OPEC FUND APPROVES OVER US$1 BLN FOR GLOBAL SUSTAINABLE DEVELOPMENT PROJECTS

KUALA LUMPUR, Sept 22 (Bernama) -- The OPEC Fund for International Development (the OPEC Fund) has approved over US$1 billion in new development financing during the third quarter of 2025, as announced following its 193rd Governing Board meeting. (US$1=RM4.20)

The institution also successfully issued its first-ever euro-denominated benchmark bond, raising 500 million euros on international capital markets, in a landmark move to further strengthen its development mandate.

“The new approvals, alongside our inaugural euro benchmark bond, are a clear demonstration of our commitment to delivering more for our partner countries.

“As we approach our 50th anniversary in 2026, these twin milestones highlight our ability to innovate, grow and drive transformational impact for decades to come,” said OPEC Fund President, Abdulhamid Alkhalifa in a statement.

The recently approved operations will support transformative projects across Africa, Asia, Latin America and the Caribbean, spanning health, education, clean energy, water and sanitation, sustainable livelihoods and resilient infrastructure.

The newly approved public sector financing will support a wide range of transformative projects across various regions. In El Salvador, a US$70 million loan will co-finance the second phase of the Surf City Program, aimed at road upgrades, sanitation expansion, and climate resilience in La Libertad’s tourism zone.

Eswatini is receiving US$50 million to implement fiscal reforms and strengthen competitiveness, while Papua New Guinea will benefit from a similar amount to improve early education and teacher training. In South Africa, the OPEC Fund is providing US$150 million to modernise infrastructure and advance energy reforms in support of a low-carbon transition.

On the private sector front, Egypt is receiving US$40 million for a large-scale solar-plus-storage facility in Aswan, one of the largest in Africa. Bangladesh is being allocated US$30 million to improve access to trade finance for micro, small and medium enterprises (MSMEs), particularly in agribusiness.

Additional funding includes US$25 million to Jordan to scale up MSME and climate lending, US$50 million to Oman for an industrial facility producing renewable energy inputs, and US$25 million to Paraguay as part of a larger syndicated facility aimed at SME development with a focus on women-led businesses.

The success of the Euro benchmark bond marks a milestone in the OPEC Fund’s funding strategy, broadening its investor base and reinforcing its position as a credible and innovative development finance institution.

The proceeds of the bond will be used to finance and refinance projects aligned with the OPEC Fund’s development mandate, with a strong focus on sustainability and long-term impact.

-- BERNAMA