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AfDB’s Board of Directors approves the institution’s borrowing program for 2017
The Board of Directors of the African Development Bank has approved the institution’s borrowing program for 2017, for an amount of UA 6.9 billion (equivalent to USD 9.4 billion) to be raised from capital markets. One of the main objectives of the program is to raise resources from capital markets, in a cost effective manner, to finance development projects and programs in Africa. The Bank’s funding requirements have been increasing in line with its operations and footprint on the continent. Three years ago, its annual borrowing program was USD 4.4 billion.
The AfDB has accessed a wide array of capital markets across the globe, with the bulk of its issuance in US dollars, Euro, Australian dollars and South African rand. It has also been growing its socially responsible investment programs, including green bonds and bonds around the five high priorities areas of the institution: A ‘feed Africa’ ‘Improve the quality of the life for the people of Africa’ bonds were issued in 2016 in addition to green bonds.
In line with its commitment to help develop the African capital markets, the Bank Group continues to explore the prospects for local currency bonds to facilitate the financing of its local currency operations and promote the development of domestic bond markets across Africa.
“The AfDB’s credit story and impact on the continent is very high, and investors in its bonds gets not only a financial return, but the assurance that the funds will be used to combat poverty and promote social and economic growth”, said the Treasurer of the AfDB Group Hassatou N’Sele.
The AfDB is rated triple-A by all the major international rating agencies and also enjoys a good ESG (Environmental Social and Governance) rating.