The African Development Bank has revealed its intention to borrow some $7.21 billion from various capital markets this year.
The board of the finance institution approved it to boost economic growth on the continent.
The funds will be used to finance some major infrastructural projects by some countries on the continent.
A statement released by the bank says “AfDB 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.”
“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 statement added.
The bank’s treasurer, Hassatou N’Sele says “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 African Development Bank mandate.”
The African Development Bank is rated triple-A by all the major international rating agencies. It enjoys several solid ESG (Environmental Social and Governance) ratings.
In 2017, the Bank disbursed US$7.51 billion to finance projects and programs in its Regional Member Countries. That exceeded its target for non-sovereign operations by 56%.