Japan’s Government Pension Investment Fund (GPIF) and the African Development Bank (AfDB) have started a partnership that aims to strengthen capital market cooperation to promote ESG integration into fixed income investment.

The AfDB issues green and social bonds that align with the International Capital Market Association (ICMA) Green Bond Principles and Social Bond Principles that contribute to make a sustainable society. Investment opportunities in these bonds will be provided to GPIF's asset managers.

“GPIF demands our asset managers to integrate ESG into their investment process from analysis to investment decision. We regard the purchase of green, social and sustainability bonds as one of the direct methods of ESG integration in the fixed income investment. GPIF wishes to contribute to make green, social and sustainability bonds mainstream investment products in order to ensure the sustainable performance of the pension reserve fund for all the generations,” says Hiro Mizuno, Executive MD and CIO of GPIF.

“This landmark strategic partnership will help to catalyze investment capital, create more sustainable investments and support the African Development Bank to achieve its High 5 priorities to fast-track Africa's development,” says Akinwumi Ayodeji Adesina, President of the African Development Bank Group.