African Development Bank Sells First Kangaroo Bond
Posted on 06/08/2021
The African Development Bank sold its first kangaroo bond in social format.
A kangaroo bond is a type of foreign bond issued in the Australian market by non-Australian firms and is denominated in Australian currency. The bond is subject to the securities regulations of Australia. A kangaroo bond is also known as a “matilda bond.”
In late May 2021, the Board of Directors of the African Development Bank Group has approved US$ 84.22 million in loans and grants to electrify nearly 80,000 rural households in south Rwanda. The project will advance the country’s goal of universal electrification and benefit small businesses and youth. The funds comprise a loan of $36.77 million from the Bank Group’s African Development Fund and a $47.45 million ADF grant. The approval was made on May 26, 2021. The Transmission System Reinforcement and Last Mile Connectivity project will provide first-time electricity connection to 77,470 households to the grid, entailing the construction of 595 km of medium voltage distribution lines and 1,620 km of low voltage distribution networks in six southern Rwanda districts. The project will also see the upgrade, rehabilitation and extension of 1,720 km of low voltage network, and distribution of transformers in secondary cities with high load.
