The Cape Verde Stock Exchange (BVCV) will issue the first Social Bond during June, following a trend within several African countries like South Africa and most recently Ghana.
In particular, the issuer of the first Social Bond issue in Cape Verde shall be MORABI, a savings and microcredit cooperative operating in the country since December 2018, with support a greater social inclusion, job creation and promoting greater sustainability and development in the country, are the objectives of this initiative.
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A social bond is a debt instrument used to raise funds for projects with positive social outcomes, such as in education, healthcare, and food security. Its issuance is on an upward trajectory globally, as investors combine profit and mission to tackle inequalities. This type of bond reached record levels during 2020 and it’s expected to grow by 6% to US$150B in funds raised during 2021.
To refer that African Development Bank (AFDB) has been quite active in this space, with its social bond program launched early-2017 and last March 2020 raised US$3B in a three-year bond to lighten the severe economic and social impact of the Covid-19 pandemic on Africa’s economies.
