AfDB Board Okays $10.4bn Borrowing Scheme for 2021

By Adedapo Adesanya

The Board of Directors of the African Development Bank (AfDB) has been approved the 2021 Borrowing Programme for up to $10.4 billion.

In a statement issued on Sunday, the regional financing body said the approval was made on December 11, 2020, and the funds would be sourced from capital markets.

This programme will allow the bank to raise funds in the debt capital markets in order to help finance the lender’s projects and programs in Africa.

AfDB is active in various international capital markets including the US Dollar, Euro, Australian Dollar and Pound sterling

The bank will 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

In the socially responsible investment arena the Bank continues to be active and a regular issuer of green and social bonds, as highlighted by its award-winning and landmark $3 billion, three-year “Fight Covid-19” Social Bond earlier this year.

The AfDB noted that it has also continued to use its ‘High 5’ operational priorities as a platform to issue 19 theme bonds, including ‘Improve the Quality of the Life for the People of Africa’ and ‘Light Up and Power Africa’ bonds.

The AfDB Group is Africa’s premier development finance institution. It comprises three distinct entities: the African Development Bank (AfDB), the African Development Fund (ADF) and the Nigeria Trust Fund (NTF). On the ground in 41 African countries with an external office in Japan, the Bank contributes to the economic development and the social progress of its 54 regional member states

The AfDB is rated triple-A by all the major international rating agencies with a stable outlook and is also rated by the ESG (Environmental Social and Governance) rating agencies.