MICROCAPITAL BRIEF: African Development Bank (AfDB) Issues $80m in Local- Currency Bond in Nigeria’s Capital Market

The African Development Bank (AfDB), a multilateral finance institution based in Tunisia and gives loans and grants to governments and private companies in Africa, reportedly has raised NGN 12.95 billion (USD 80 million) by issuing a 7-year local-currency bond in the Nigerian market. The bank previously received approval from the Security Exchange Commission of Nigeria, the government agency mandated to regulate the Nigerian capital market, to issue medium-term notes worth NGN 160 billion (USD 1 billion). The proceeds from the issuance are intended to finance local small and medium-sized enterprises (SMEs) and infrastructure projects.

Since 2005, AfDB issued local-currency bonds in Botswana, Ghana, Kenya, Tanzania, Uganda and Zambia. The proceeds from these issuances have been used to fund local-currency loans to clients in those respective countries thus, reducing the foreign exchange risk for those clients.

As at December 31, 2013 AfDB reported total assets of USD 8.6 billion, total liabilities of USD 5.8 billion and lend an approximate total of USD 3 billion.

By Hope Gitangu, Research Associate

About African Development Bank (AfDB)

The African Development Bank Group (AfDB) was founded in 1964 and provides loans and grants to governments and private companies in Africa. It consists of three entities: The African Development Bank, The African Development Fund and The Nigerian Trust Fund. Owned and funded by its member governments, the bank has a mandate to reduce poverty and promote sustainable development. AfDB shareholders consist of 77 member countries, including 53 African countries to which it commits an approximate total of USD 3 billion annually.

Sources and Additional Resources.

[1] AfDB Issues its Inaugural Local Currency Worth $1b Mostly for SMEshttp://www.afdb.org/en/news-and-events/article/afdb-issues-its-inaugural-local-currency-bond-in-the-nigerian-capital-market-13376/

MicroCapital story May, 8, 2014,”African Development Bank (AfDB) Announces $9m Line of Credit for Moza Banco of Mozambique for SMEs”https://www.microcapital.org/microcapital-brief-african-development-bank-afdb-announces-9m-line-of-credit-for-moza-banco-of-mozambique-for-smes/

MicroCapital Story, July 25, 2013, “African Development Bank (AfDB) Loans $17m to Société Nigérienne de Banque (Sonibank) of Niger to Support Private Sector,” https://www.microcapital.org/microcapital-brief-african-development-bank-afdb-loans-17m-to-societe-nigerienne-de-banque-sonibank-of-niger-to-support-private-sector/

MicroCapital Story, December 25, 2012, “FirstRand Bank of South Africa Receives $300m Line of Credit from African Development Bank (AfDB),”https://www.microcapital.org/microcapital-brief-firstrand-bank-of-south-africa-receives-300m-line-of-credit-from-african-development-bank-afdb/

MicroCapital Universe Profile: African Development Bank Group,http://microcapital.org/microfinanceuniverse/tiki-index.php?page=African+Development+Bank++%28AfDB%29

Do you know that MicroCapital publishes the MicroCapital Monitor newspaper each month? Find out more at https://www.microcapital.org/products-page/

 

Similar Posts: