OPEC Fund for Development raises $1 billion from its first-ever ‎bond sale

The OPEC Fund for International Development, a development institution set up by the Organization of the Petroleum Exporting Countries nearly 50 years ago, has raised $1 billion from the sale of its first-ever bond.

According to “Reuters”, the bonds have a term of three years, with an interest rate of 4.5 percent. It is also to be classified as “sustainable development” bonds, and its funds are allocated in favor of food security, health care, infrastructure, education, employment and renewable energy projects.

Investors are increasingly interested in this category of bonds, as they look to invest in instruments with greater environmental and social benefits.

The OPEC fund said central banks and other “official” institutions accounted for 62 percent of bond buyers. Banks accounted for 19 percent, while asset management companies and insurance and pension funds accounted for almost the rest.

Geographically, the fund said just over half of buyers were from Europe, the Middle East and Africa, 27 percent from Asia and the Pacific and 21 percent from North America.