• About
  • Advertise
  • Privacy Policy
  • Contact
Tuesday, June 24, 2025
  • Login
The Vaultz News
  • Top Stories
  • News
    • General News
    • Education
    • Health
    • Opinions
  • Economics
    • Economy
    • Finance
      • Banking
      • Insurance
      • Pension
    • Securities/Markets
  • Business
    • Agribusiness
    • Vaultz Business
    • Extractives/Energy
    • Real Estate
  • World
    • Africa
    • America
    • Europe
    • UK
    • USA
    • Asia
    • Around the Globe
  • Innovation
    • Technology
    • Wheels
  • Entertainment
  • 20MOBPL2DNew
  • Jobs & Scholarships
    • Job Vacancies
    • Scholarships
No Result
View All Result
The Vaultz News
  • Top Stories
  • News
    • General News
    • Education
    • Health
    • Opinions
  • Economics
    • Economy
    • Finance
      • Banking
      • Insurance
      • Pension
    • Securities/Markets
  • Business
    • Agribusiness
    • Vaultz Business
    • Extractives/Energy
    • Real Estate
  • World
    • Africa
    • America
    • Europe
    • UK
    • USA
    • Asia
    • Around the Globe
  • Innovation
    • Technology
    • Wheels
  • Entertainment
  • 20MOBPL2DNew
  • Jobs & Scholarships
    • Job Vacancies
    • Scholarships
No Result
View All Result
The Vaultz News
No Result
View All Result

AfDB Enters New $1bn Exposure Exchange With The Asian Development Bank

July 21, 2023
Stephen M.Cby Stephen M.C
in Africa
0
AfDB Enters New $1bn Exposure Exchange With The Asian Dev't Bank

The Board of Directors of the African Development Bank has approved a $1 billion exposure exchange with the Asian Development Bank. The transaction will support its efforts to unlock additional sovereign lending headroom.

The transaction is also expected to bolster continued efforts to create buffers within the African Development Bank’s capital adequacy metrics.

This new exposure exchange agreement is the second transaction that the African Development Bank has executed following the success of the first agreement finalized in 2015 with the Inter-American Development Bank and the World Bank Group’s International Bank for Reconstruction and Development.

RelatedPosts

Africa Seeks Equal Voice In U.S. Partnership

New ECOWAS Chairman Pledges Stronger Regional Unity

 Sudan’s Warring Factions Rethink Regional Diplomacy

Exposure exchanges between multilateral development banks involve a synthetic exchange of sovereign exposures in a risk-neutral manner to help address single obligor constraints and portfolio concentration.

This new exposure exchange allows the African Development Bank to continue supporting its regional member countries, particularly following the Covid-19 pandemic, combined with the spill over effects of the Russian–Ukraine war, which affected most African countries.

A Continued Step In Implementing The G20 Action Plan

The exposure exchange with the Asian Development Bank is a continued step in implementing the G20 Action Plan to optimize balance sheets of multilateral development banks without substantially increasing risk or adversely affecting their credit ratings.

Although the African Development Bank’s current prudential ratios are compliant with their statutory limits and S&P Global Ratings has confirmed its credit rating at AAA, this second exposure exchange will allow the Bank to provide African countries with additional financing, particularly those where it is necessary to increase countercyclical lending, while complying with its internal single obligor limits and concentration ratios.  

Commenting on the transaction, Max Ndiaye, Director of the Syndications, Co-financing and Client Solutions Department at the African Development Bank, underscored the relevance of the bank to the developed countries, particularly the G20 nations.

“This operation demonstrates the relevance of the African Development Bank and its peer institutions in adhering to the G20 call on the multilateral development bank community to collaborate in adopting innovative approaches and initiatives. This includes risk transfers to maximize capital for increased development lending.” 

Max Ndiaye

This transaction will help the African Development Fund (ADF) to address the dire economic conditions on the continent. This is because the African Development Fund provides development finance on concessional terms to low-income RMCs which are unable to borrow on the non-concessional terms of the AfDB.

In harmony with its lending strategy, poverty reduction is the main aim of ADF activities. Twenty-four non-African countries along with the AfDB constitute its current membership. The largest ADF shareholder is the United Kingdom, with approximately 14% of the total working shares followed by United States with approximately 6.5 percent of the total voting shares, followed by Japan with approximately 5.4 percent. The Federal Reserve Bank of New York was designated as the depositor bank for the fund according to telegraphs sent from the U.S. Embassy in Abidjan in 1976.

READ ALSO: GSE Discloses Plans of Doubling Equity Market from GH¢65 billion to GH¢130 billion

Tags: AfDB Enters New $1bn Exposure ExchangeAsian Development BankInter-American Development BankRussian–Ukraine warWorld Bank Group
Please login to join discussion
Previous Post

India And Sri Lanka Ink Energy, Development And Trade Deals

Next Post

I Can’t Believe You Jabbed Yvonne; It Was Harsh – American Broadcaster

Sign up for The Vaultz analytic wire

Get weekly news analysis from top editors at The Vaultz and stay informed on trending economic and business issues from across the globe.

Related Posts

Yaw Boafo Esq., Lawyers, Behaviour
General News

Former GBA President Calls for Sanctions Against Disorderly Lawyer-Politicians

June 23, 2025
Trump Demands Iran’s ‘Unconditional Surrender’
Asia

Iran Hits US Military Base In Qatar

June 23, 2025
Bawumia camp fakes NPP support
General News

Kennedy Agyapong Camp Shrugs Off Bawumia Endorsements

June 23, 2025
Coalition of Concerned Nzema People, Committee, Land
General News

CCNP Accuses Government Over Land Issues Surrounding Petroleum Hub’s Project

June 23, 2025
trawl-vessels
General News

Fisheries Ministry Announces 2025 Closed Fishing Season 

June 23, 2025
Absa Bank Champions Digital Adoption for Financial Inclusion in Ghana
Banking

Absa Bank Champions Digital Adoption for Financial Inclusion in Ghana

June 23, 2025
Yaw Boafo Esq., Lawyers, Behaviour
General News

Former GBA President Calls for Sanctions Against Disorderly Lawyer-Politicians

by Silas Kafui AssemJune 23, 2025
Trump Demands Iran’s ‘Unconditional Surrender’
Asia

Iran Hits US Military Base In Qatar

by Comfort AmpomaaJune 23, 2025
Bawumia camp fakes NPP support
General News

Kennedy Agyapong Camp Shrugs Off Bawumia Endorsements

by Lilian AhedorJune 23, 2025
Coalition of Concerned Nzema People, Committee, Land
General News

CCNP Accuses Government Over Land Issues Surrounding Petroleum Hub’s Project

by Silas Kafui AssemJune 23, 2025
trawl-vessels
General News

Fisheries Ministry Announces 2025 Closed Fishing Season 

by Evans Junior OwuJune 23, 2025
Absa Bank Champions Digital Adoption for Financial Inclusion in Ghana
Banking

Absa Bank Champions Digital Adoption for Financial Inclusion in Ghana

by Stephen M.CJune 23, 2025
Yaw Boafo Esq., Lawyers, Behaviour
Trump Demands Iran’s ‘Unconditional Surrender’
Bawumia camp fakes NPP support
Coalition of Concerned Nzema People, Committee, Land
trawl-vessels
Absa Bank Champions Digital Adoption for Financial Inclusion in Ghana
[/vc_row_inner]

Recent News

  • Former GBA President Calls for Sanctions Against Disorderly Lawyer-Politicians
  • Iran Hits US Military Base In Qatar
  • Kennedy Agyapong Camp Shrugs Off Bawumia Endorsements
  • CCNP Accuses Government Over Land Issues Surrounding Petroleum Hub’s Project
  • Fisheries Ministry Announces 2025 Closed Fishing Season 
The Vaultz News

Copyright © 2021 The Vaultz News. All rights reserved.

Navigate Site

  • About
  • Advertise
  • Privacy Policy
  • Contact

Follow Us

Welcome Back!

Login to your account below

Forgotten Password?

Retrieve your password

Please enter your username or email address to reset your password.

Log In
No Result
View All Result
  • Top Stories
  • News
    • General News
    • Education
    • Health
    • Opinions
  • Economics
    • Economy
    • Finance
      • Banking
      • Insurance
      • Pension
    • Securities/Markets
  • Business
    • Agribusiness
    • Vaultz Business
    • Extractives/Energy
    • Real Estate
  • World
    • Africa
    • America
    • Europe
    • UK
    • USA
    • Asia
    • Around the Globe
  • Innovation
    • Technology
    • Wheels
  • Entertainment
  • 20MOBPL2D
  • Jobs & Scholarships
    • Job Vacancies
    • Scholarships

Copyright © 2021 The Vaultz News. All rights reserved.