OPEC Fund issues its second US$ benchmark in the international capital market

Following strong investor interest new bond issuance is many times oversubscribed

The OPEC Fund has raised an additional US$500 million in development funding with the issuance of a new 3-year public benchmark bond. The transaction marks the OPEC Fund’s first US$ fixed rate benchmark of 2024 and pays an annual coupon of 4.625 percent. The issuance follows the upgrade of the OPEC Fund’s rating in December 2023, when S&P raised the long-term issuer credit rating to “AA+” from “AA” and assigned a stable outlook.

The bond attracted strong investor interest from more than 100 investors and was more than eight times oversubscribed. Nomura Financial Products Europe GmbH, one of the lead managers of the transaction, said that this was “a remarkable reflection of the work the OPEC Fund have invested in Investor Relations since the inaugural transaction” in January 2023.

53 percent of investors in the bond are from Europe, Middle East and Africa (EMEA), 32 percent from Asia-Pacific (APAC) and 15 percent from North America (NAM). In terms of investor type, central banks & official institutions accounted for 88 percent, asset managers 10 percent and banks 2 percent.

Distribution Statistics

The Joint Lead Managers on the transaction were Citigroup Global Markets Europe AG, BofA Securities Europe S.A., Goldman Sachs Bank Europe SE and Nomura Financial Products Europe GmbH. 

About the OPEC Fund 

The OPEC Fund for International Development (the OPEC Fund) is the only globally mandated development institution that provides financing from member countries to non-member countries exclusively. The organization works in cooperation with developing country partners and the international development community to stimulate economic growth and social progress in low- and middle-income countries around the world. The OPEC Fund was established in 1976 with a distinct purpose: to drive development, strengthen communities and empower people. Our work is people-centered, focusing on financing projects that meet essential needs, such as food, energy, infrastructure, employment (particularly relating to MSMEs), clean water and sanitation, healthcare and education. To date, the OPEC Fund has committed about US$27 billion to development projects in over 125 countries with an estimated total project cost of more than US$200 billion. The OPEC Fund is rated AA+/Outlook Stable by Fitch and AA+, Outlook Stable by S&P. Our vision is a world where sustainable development is a reality for all.