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Highlights – Board Meeting of 20 July 2018

27-Sep-2018

Board members noted that the proposed transaction will allow the Bank to manage its credit exposures and lending headroom more efficiently, while mobilizing additional financial resources. Executive Directors commended Management for the innovative tool and acnowledged its importance in optimizing the Bank’s balance sheet through the reduction of the risk-weigh of the portfolio, lowering of risk capital consumption and creation of between USD 600-700 million in additional lending headroom, while simultaneously leveraging private investment into Africa. A Chair, however, wondered whether the transaction is a right priority given the execution challenges and whether it is beneficial to the Bank. Given the innovative nature of the transaction, Executive Directors stressed the need for Management to carefully monitor its implementation, periodically update the Board on its progress, and ensure due diligence by all actors to avoid any systemic effect. Finally, the Board invited Management to seek the guidance of the Board for any new transaction or increase of capital or deployment of resources generated by the transaction. At the end of its deliberations, the Board approved the proposal.

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