…placing the AfDB as a Homesteader in Innovative Sustainable Financing the AfDB Group earned a Global tribute for its Inaugural Hybrid Capital Issuance
By Abdul Rahman Bangura-
NEW AFRICA BUSINESS NEWS (NABN) Freetown, Sierra Leone– Hybrid capital will give birth to a multiplier impact on the Bank’s financing, and enable the issuance of extra green, social and sustainable bonds to finance projects eating some of the African Continent’s most crucial development challenges, comprising food security, access to water and health services, and climate change.
Dr. Akinwumi Adesina – President of AfDB Group global and regional multilateral development banks are being inquired of to remake their business varieties to influence more financing at scale, tackle climate change, and accelerate development.
“The African Development Bank is a pioneer in financial innovations. Our decision to issue hybrid capital will allow us to leverage more financing from capital markets to further accelerate Africa’s growth and development,” Adesina let out.
According to S&P, “As far as we are aware, the African Development Bank would be the first MLI (Multilateral Lending Institution) to incorporate hybrid capital into its capital structure.”
The Bank’s hybrid capital ambition has earmarked widespread awareness, incorporating from the G20 Capital Adequacy Experts group, which has approved that other multilateral development banks similarly explore hybrid capital instruments.
Hybrid capital is a mixture of debt and equity, that completes rather than renovates these two streams of finance. It is a conventional financing instrument that is widely utilized by corporates, financial institutions, insurance companies, and agencies, but has
not yet been employed by multilateral development banks.
“This is another way to bolster an MDB capital base and optimize its balance sheet. The African Development Bank is beginning a new asset class, hybrid capital, issued by AAA rated multilateral development banks,” told the Bank’s Vice President for Finance and Chief Financial Officer – Hassatou N’Sele.
Adesina announced, he as please pleased with this memorable accomplishment by the African Development Bank.
“We will continue to respond and lead with financial innovations, in response to the need to leverage more financing, as per the global calls for reforms of the global financial architecture,” Adesina asserted.
For New Africa Business News (NABN) Abdul Rahman Bangura Reports, Africa Correspondent