The Organization of the Petroleum Exporting Countries founded the OPEC Fund for International Development about 50 years ago, and through the sale of its first bond, it has raised $1B. The three-year bond, which will pay investors an interest rate of 4.5% and have funds designated for food security, healthcare, infrastructure, education, employment, and renewable energy initiatives, will also be referred to as a “sustainable development” bond.
It is a designation that is gaining popularity among investors who are striving to allocate their capital in ways that are more advantageous to society and the environment, says Reuters. According to the OPEC Fund, 62% of the bond’s purchasers were central banks and other “official” organisations. Banks made up 19% of the total, with asset managers, insurance, and pension funds making up nearly all of the remaining percentage.
As for geography, slightly over half of the buyers were from Europe, the Middle East, and Africa, 27% were from Asia-Pacific, and 21% were from North America.
