ECOWAS Bank raises authorised capital to $3.5 billion
The board of governors of the ECOWAS Bank for Investment and Development (EBID) has unanimously increased the bank’s authorised capital from US$1.5 billion to US$3.5 billion with effect from January 2023.
The governors also called for the third tranche of the capital of the bank which is in the sum of US$438 million.
The board comprising the ministers for finance and ministers for planning and development of the 15 ECOWAS member states took this decision at its just ended 10th extraordinary session held on 27 October 2022 in Praia, Republic of Cabo Verde.
The president and chairman of the board of EBID, Dr George Agyekum Donkor, made this disclosure immediately after the session. According to Donkor, the decision by the governors was very strategic and timely, especially as the bank intensifies its resource mobilisation initiatives and seeks to position itself as the foremost regional development finance institution committed to playing a key and expansive role in assisting ECOWAS member states to navigate the path to socio-economic recovery from the fallout of the COVID-19 pandemic and the Russian – Ukraine war.
Outlining the justifications for the governors’ decision, Donkor emphasised the need for the bank to improve leverage, capital adequacy, liquidity, and the overall risk-bearing capacity.
He stressed on the need for the bank to be abreast with industry trends and improve its rating.
According to him, calling the third tranche of the bank’s capital will no doubt enhance its capacity to grant concessionary resources to member states in order to accelerate economic recovery.
The chairman of the board of governors, who is also the Vice-prime minister for finance and business development and minister for digital economy of Cabo Verde, Dr Olavo Avelino Garcia Correia, commended the president of the bank and his team for the remarkable and exceptional performance within a short time which has led to impressive operational and financial performance of EBID and the eventual upgrade of the bank’s rating by both Moddy’s and Fitch rating agencies.
He urged the EBID management not to rest on its oars but strive to obtain investment grade in order to attract competitive resources for ECOWAS members.
