AfDB plans to raise $7 billion from capital markets
AfDB board approves plan to raise over Sh700b from capital markets
The African Development Bank (AfDB) plans to borrow Sh700 billion ($7 billion) from the capital markets to finance development projects in member countries.
The bank said the board had approved the institution’s 2019 borrowing programme even as it seeks to maintain an active presence in the investment arena by being a regular issuer of green and social bonds.
“These products not only serve to satisfy the increasing demand for impact investment but also allow the bank to highlight its development mandate and promote sustainable and inclusive growth,” noted the regional lender.
In 2017, the bank had disbursed up to Sh751 billion ($7.51 billion) to finance development programmes in member countries, exceeding its target for non-sovereign operations by 56 per cent.
The institution also used its platform to continue the issuance of theme bonds including the inaugural integrate Africa, feed Africa and more than 40 ‘improve the quality of life for the people of Africa’ bonds, as well as two of its ‘light up and power Africa’ bonds.
“We continue to raise our profile in the capital markets to provide cost-effective resources to finance projects and programs on the African continent,” the bank’s Treasurer, Hassatou N’Sele said. "We have a strong track record, a diversified funding profile, investors across the world and the benefits of a AAA rating to strongly support the AfDB mandate."
The lender enjoys environmental social and governance ratings.
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AfDBCapital MarketsFinance Development