01 | THE HIGHLIGHTS – SUSTAINABLE DEVELOPMENT GOALS
SUSTAINABLE DEVELOPMENT GOALS
The first SDG Bond Impact Report Building a better and bigger multilateral development bank
4. Access to Essential Services and Affordable Basic Infra- structure: SDG 1 - No Poverty, SDG 6 - Clean Water and Sanitation, SDG 7 - Affordable and Clean Energy, SDG 9 - Industry, Innovation and Infrastructure and SDG 11 - Sustainable Cities and Communities
In 2019, the OPEC Fund started a transformation with the adoption of its Strategic Framework 2030, designed to enhance development support by growing and expanding its operations. Key to expanding operations was a diversi- fication of the sources of funding of the Ordinary Capital Resources (OCR) to include the international capital markets. OCR are primarily used for lending to middle-in- come countries, selected less-developed countries and private sector borrowers. After detailed preparation the OPEC Fund issued its inaugural benchmark bond in January 2023, raising US$1 billion to finance or refinance eligible loans furthering the Sustainable Development Goals (SDGs) under a dedicated SDG Bond Framework. The impact of the projects financed by bonds issued under this framework was published in the first SDG Bond Impact Report in 2024. The SDG Bond Framework — benefitting from a Second Party Opinion from the specialized sustainability rating agency Sustainalytics — incorporates five social catego- ries and one green category. These categories represent many of the pressing needs of the OPEC Fund partner countries and comprise:
5. Employment Generation and Socio-economic Advancement and Empowerment: SDG 1 - No Poverty and SDG 8 – Decent Work and Economic Growth
6. Renewable Energy: SDG 7 - Affordable and Clean Energy and SDG 13 - Climate Action.
Eligible projects are selected by a multidisciplinary internal committee. The net proceeds of the bonds issued under the framework are managed through a disburse- ment approach and should be fully allocated to eligible SDG loans within 36 months of each bond issuance. Reporting to investors takes place annually and the allo- cation of eligible assets is verified by an external inde- pendent party. For the 2024 report this service was also provided by Sustainalytics. The first SDG Bond Impact Report shows that by December 31, 2023, US$862.13 million of the proceeds of the US$1 billion bond had been allocated to fund eligible SDG loans. In total, 57 eligible SDG loans were selected for funding from the bond proceeds, of which 34 projects were completely disbursed and 23 were ongoing. While 86.2 percent of the proceeds were assigned to refi- nancing projects, 13.8 percent will be assigned to new disbursements of the 23 ongoing projects. The pending amount of US$137.87 million is set to be disbursed by January 2026 at the latest.
1. Access to Essential Services and Food Security: SDG 1 - No Poverty and SDG 2 - Zero Hunger
2. Access to Essential Services: Health and Affordable Basic Infrastructure: SDG 3 - Good Health and Well-Being
3. Access to Essential Services: Education, SDG 4 - Quality Education
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