AfDB Capital Subscriptions

Authorized Capital

The initial authorized capital of the Bank was 250 million Units of account (UA). This has been increased in line with the provisions of the agreement, which provides that the Bank’s authorized capital stock may be increased as and when the board of governors deems it advisable.

After the restructuring of the capital stock on May 29, 1998, by the board of governors, the share of non-regional members in the Bank's authorized capital increased from 331/3 per cent to 40 per cent, while the regional members' share has decreased from 662/3 to 60 per cent. View ADB Capital Increases.

Subscribed Capital

It was envisaged under the resolution authorizing GCI-IV that upon full subscription of all authorized shares, the Bank's capital would consist of 12.5 per cent paid-up and 87.5 per cent callable shares. In order to attain this ratio, the board of governors decided in May 1992 to adopt certain measures to restructure the capital stock of the Bank.

Such measures entail the general application of the Bank's Share Transfer Rules to all shares issued under or prior to GCI-IV, the cancellation of forfeited and unsubscribed shares and their reissue as one block subject to the same terms and conditions of subscription and carrying a ratio of seven callable shares for each paid-up share, and ensuring that the statutory ratio of regional to non-regional stock is maintained.

The new shares created under the Fifth General Capital Increase (GCI-V) are divided into paid-up and callable shares in the proportion of 6 per cent paid-up shares and 94 per cent callable shares.

With the GCI-V now effective, the authorized capital stock of the Bank now consists of 10.29 per cent paid-up shares and 89.71 per cent callable shares.

The agreement provides that shares of capital stock are to be issued at par value (UA 10,000 per share), unless the board of governors decides by a majority vote to issue them on other terms.

The liability of the members is limited to the unpaid portion of the issue price of the shares. Shares are transferable only to the Bank.

Callable Capital

Callable capital is that portion of subscribed capital stock subject to call only as and when required by the Bank to meet its obligations on borrowing of funds for inclusion in its ordinary capital resources or guarantees chargeable to such resources. In the event of a call, payment must be made by member countries concerned in gold, convertible currency or in the currency required to discharge the obligation of the Bank for which the call was made.

Calls on the callable capital are required to be uniform in percentage on all shares of capital stock, but obligations of the members to make payment upon such calls are independent of each other. The failure of one or more members to make payments on any such call would not excuse any other member from its obligation to make payment.

Further calls can be made on non-defaulting members if necessary to meet the Bank's obligations. However, no member could be required to pay more than the unpaid balance of its ordinary capital subscription. No calls have ever been made on the callable capital of the Bank.