The Board of Governors of the African Development Bank Group has approved a landmark $117 billion (88.1 billion Units of Account) increase in callable capital. This strategic move aims to bolster the institution’s lending capacity and maintain its top-tier credit rating. The increase will raise the Bank’s authorized capital from $201 billion to $318 billion.
President Adesina Expresses Gratitude for Shareholder Confidence
African Development Bank Group President, Akinwumi Adesina, expressed his gratitude for the unwavering support of the Bank’s shareholders. He emphasized that the additional capital will enable the Bank to maintain its financial strength while preserving its AAA credit rating. Adesina further highlighted the significance of this decision, stating that it reflects the shareholders’ trust in the institution’s ability to effectively utilize resources and mobilize additional capital for greater impact.
AAA Credit Rating Reaffirmed by Leading Rating Agencies
Hassatou Diop N’Sele, Vice President for Finance and CFO, highlighted the recent reaffirmation of the Bank’s AAA credit rating by four major rating agencies: Standard and Poor’s, Moody’s, Fitch, and Japan Credit Rating. This reaffirms the Bank’s robust financial position, prudent management, and strong shareholder support.
Capital Increase Essential to Meet Growing Demand
The capital increase is deemed essential to meet the increasing demand for development financing in African countries. It also addresses the requirements of credit rating agencies, ensuring the Bank maintains a sufficient level of AAA-rated callable capital to support its lending activities.
Shareholders Voice Strong Support for Capital Increase
Shareholders from various countries, including Egypt, Germany, Kenya, South Africa, Spain, and the United States, expressed their strong support for the capital increase. They emphasized the importance of maintaining the Bank’s AAA rating and its critical role in supporting sustainable development across the continent.
Capital Increase to Address Development Needs and Global Challenges
The capital increase will enable the Bank to address the significant development financing needs of its member countries, particularly in the face of growing global challenges. It also aligns with the G20’s call for multilateral development banks to reform and evolve to better meet the needs of developing nations.