01 August 2015, Sweetcrude, Lagos – The African Development Bank, AfDB, sold $20 million in infrastructure bonds to the Fukoku Mutual Life Insurance Company, Fukoku Life. Fukoku Life was the sole investor in the transaction.
Africa still has massive infrastructure needs. Bridging the infrastructure gap could increase GDP growth by an estimated 2 percentage points a year. Since inception and more recently through its Private Sector Operations department, the AfDB has been and is still making significant contributions to infrastructure development in Africa. The Bank’s investments in transport, energy, ICT and water are improving the living conditions of millions of Africans.
Infrastructure development is one of the five operational priorities under the 2013-2022 ten-year strategy, and the AfDB intends to significantly scale up infrastructure financing to the continent through its own lending and by leveraging additional financial resources. Issuance of infrastructure bonds is one of the alternative financing solutions which can support investments in various infrastructure projects while securing capital to match long-term needs.
AfDB will use its best efforts to direct an amount equal to the net proceeds of the infrastructure bonds to lending projects within the field of Infrastructure, subject to and in accordance with AfDB’s lending standards.
Fukoku Life believes the infrastructure bonds could offer attractive return on their policy holders’ funds while achieving a positive social impact in African nations.
The bonds were offered to Fukoku Life through a private placement format with J.P. Morgan being the sole arranger of the transaction.
Summary Terms of the AfDB Infrastructure Bonds
African Development Bank (AfDB）
US Dollar (USD)
Issue Amount (Settlement Amount)
24 July 2015
24 July 2025
J.P. Morgan Securities plc
The African Development Bank (AfDB) is a regional multilateral development finance institution established to promote the economic development and social progress of its Regional (African) Member Countries (RMCs) The AfDB was founded in 1964 and comprises of 54 RMCs and 26 non-regional member countries. The non-regional member countries are primarily from Europe, America, Middle East and Asia including Japan. The AfDB’s mission is to promote the investment of public and private capital in projects and programs that are likely to contribute to the economic development of its Regional Member Countries. The AfDB has Aaa ratings assigned by Moody’s, AAA rating assigned by Standard & Poor’s, AAA from Fitch Ratings and AAA from Japan Credit Rating Agency. For more information, visit http://www.afdb.org/en/
About Fukoku Life
Fukoku Life is a leading life insurance firm based in Japan with assets of approximately 7trillion yen. Fukoku Life was founded in 1923 and since then, we have held as our fundamental principle that the interests of policyholders must be protected to the utmost of our ability. Throughout the life insurance industry, Fukoku Life is noted for its distinguished investment record and efficient corporate management. For more information, visit http://www.fukoku-life.co.jp/
About J.P. Morgan
JPMorgan Chase & Co. is a leading global financial services firm with assets of $2.4 trillion and operations worldwide. The Firm is a leader in investment banking, financial services for consumers and small businesses, commercial banking, financial transaction processing, and asset management. A component of the Dow Jones Industrial Average, JPMorgan Chase & Co. serves millions of consumers in the United States and many of the world’s most prominent corporate, institutional and government clients under its J.P. Morgan and Chase brands.