The OPEC Fund for International Development (OFID) is a development finance institution established by the member countries of the Organisation of the Petroleum Exporting Countries (OPEC). The institution recently raised $1 billion by issuing its first-ever bond, which is a debt security issued by a company or government to raise capital.

The bond is fixed-rate and has a 3-year maturity, with an interest rate of 4.5%. It was priced using a framework for Sustainable Development Goal (SDG) bonds and attracted strong demand from investors globally.

The funds will be used to finance or refinance sustainable development projects that align with the OPEC Fund's mission and contribute to achieving the SDGs. Credit Agricole CIB acted as the sole sustainability advisor for the bond.

The OPEC Fund’s head of Funding, Martine Mills Jansen, said the bond pricing is a major milestone for the OPEC Fund and the culmination of several years of intensive work. “The success of our debut bond in the current market environment is a testament to the strength of our credit. We are pleased to join the community of multilateral development banks issuing in the capital markets. This is an important step in the establishment of our borrowing programme, and we look forward to continuing our engagement with investors going forward,” Mills said.

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Source: Leadership