AfDB approves $7,2bn funding for 2019

04 Jan, 2019 - 00:01 0 Views
AfDB approves $7,2bn funding for 2019

eBusiness Weekly

Oliver Kazunga
The African Development Bank (AfDB) has approved the 2019 borrowing programme to the tune of $7,24 billion from capital markets.

The regional financier accesses a wide array of capital markets with a majority of its borrowing in United States dollars and euros as well as issuances in other public markets such as Australian dollars and pound sterling.

“The AfDB’s board has approved the institution’s 2019 borrowing programme to the tune of US$7,24 billion from capital markets,” said AfDB in a statement recently.

“Africa’s premier development finance institution maintains an active presence in the socially responsible investment arena and continues to be a regular issue of Green and Social Bonds.

“These products serve to satisfy increasing demand for impact investment, but also allow the bank to highlight its development mandate and promote sustainable and inclusive growth.”

The institution has also used its “High 5” operational priorities as a platform to continue the issuance of theme bonds. These include an inaugural “Integrate Africa” bond, a “Feed Africa” bond, “Improve the Quality of the Life for the People of Africa” bonds, and two taps of its “Light Up and Power Africa” bond.

AfDB said it was keen to innovate and diversify its product range and, as the financial markets continue to look to a future after London inter-bank offered rate, the bank was able to combined innovation with its social responsibility programme.

The bank said it would continue to promote the development of African capital markets with the issue of local currency denominated debt to facilitate the financing of its local currency operations alongside other initiatives.

“We continue to raise our profile in the capital markets to provide cost-effective resources to finance projects and programmes on the African continent. We have a strong track record, a diversified funding profile, investors across the world . . . to strongly support the AfDB,” the bank’s treasurer, Ms Hassatou N’Sele, was quoted as saying.

AfDB was rated highly by all the major international rating agencies and enjoys several solid environmental, social and governance ratings. In 2017, the bank disbursed $7,51 billion to finance projects and programmes in its regional member countries, exceeding its target for non-sovereign operations by 56 percent.

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