"AfDB, ADB Sign $1 Billion Exchange Exposure Agreement to Increase Development Lending Capacity to African Nations"

" AfDB, ADB Sign $1 Billion Exchange Exposure Agreement to Increase Development Lending Capacity to African Nations \r\n\r\n \r\n \r\n \r\n \r\n \r\n\r\nThe African Development Bank and the Asian Development Bank have signed a $1 billion exchange exposure agreement (EEA) aimed at enhancing the African Development Bank\u2019s capital position and its capacity for sustainable lending across Africa.\r\n\r\nThe agreement, signed on the sidelines of the IMF \/World Bank Annual Meetings in Washington DC on Friday 25 October, is the third exposure exchange transaction under the African Development Bank\u2019s Balance Sheet Optimization strategy.\r\n\r\nThis new agreement will enable the African Development Bank to optimize its capital resources by redistributing sovereign exposures, thus reducing portfolio concentration risks and providing a protective buffer against potential credit migrations of its member countries. By mitigating sovereign concentration and maintaining a diversified risk profile, this exchange will strengthen the African Development Bank\u2019s ability to offer increased support across all its borrowing countries, even amidst global challenges that impact African economies.\r\n\r\n \r\n\r\nThe transaction follows prior successfully executed transactions in December 2015 with the Inter-American Development Bank (IADB) and the International Bank for Reconstruction and Development (IBRD) and one with the Asian Development Bank in 2023. The initial transactions allowed the Bank to diversify its concentration risks and increase its lending capacity while optimizing its balance sheet to improve its prudential ratios.\r\n\r\n\u201cThis transaction is a continued demonstration of multilateral development banks\u2019(MDBs) cooperation as recommended by the G20 International Financial Architecture working group and remains in line with the G20 call for development institutions to optimize and leverage their balance sheets. We appreciate the continued corporation with our peers in fulfilling our respective development agendas,\u201d said Hassatou N\u2019Sele, African Development Bank\u2019s Vice President for Finance and Chief Financial Officer.\r\n\r\nIn addition, the African Development Bank will be able to maintain capital flexibility without compromising its risk profile, while supporting the Bank\u2019s Ten-Year Strategy.\r\n\r\n\u201cAs MDBs, we play a crucial role in stabilizing and supporting the financial needs of developing nations. This agreement underscores our commitment to maximizing our capital resources and collaborating with our peers to sustain growth across Africa,\u201d said Max Ndiaye, Senior Director of the Syndications, Client Solutions and Africa Investment Forum department of the African Development Bank. \u201cThrough this exchange, we continue to lead in innovation, enabling us to deliver on our mission with a strengthened capital position that serves our Regional Member Countries effectively.\u201d\r\n\r\n \r\n\r\nMDBs use exposure exchange agreements as a diversification and capital management tool to optimize their balance sheets by synthetically exchanging a portfolio of loan exposures with exposure to countries where credit exposure is less or non-existent.\r\n\r\nThis latest transaction brings the total exchange exposure agreements amounts executed by the African Development Bank to $6.5 billion.\r\n\r\n \r\n \r\n \r\n \r\n "

"AfDB, ADB Sign $1 Billion Exchange Exposure Agreement to Increase Development Lending Capacity to African Nations"

RMA Demands Public Inquiry into Unibank Collapse, Slams AG’s Decision to Drop ChargesAMP

Revenue Mobilisation Africa Demands Independent Inquiry into Banking Sector Clean-Up, Questions GHS 25bn Public CostAMP

Deloitte Warns of Revenue Risks Despite Upward Revision of 2025 TargetsAMP