AfDB signs $3.2 billion exposure exchange agreement with IADB

The African Development Bank Group has renewed its previous agreement with the Inter-American Development Bank (IADB), initially signed in 2015, by executing a new US$3.2 billion Exposure Exchange Agreement.

The agreement was signed in Washington, DC, on the sidelines of the World Bank Group and International Monetary Fund Spring Meetings.

This marks the fourth exposure exchange undertaken by the African Development Bank with other Multilateral Development Banks (MDBs), aimed at enhancing the capital adequacy and operational efficiency of MDBs.

Since 2015, the African Development Bank has utilised these agreements to diversify its sovereign lending portfolio and deploy capital more effectively, while maintaining a resilient financial foundation.

This mechanism ensures that the Bank remains agile, well-capitalised, and committed to financial innovation in support of Africa’s development.

According to Dr Akinwumi Adesina, President of the African Development Bank, the transaction builds on previous successful agreements between the Bank and other MDBs, including the International Bank for Reconstruction and Development and the Asian Development Bank.

“We are pleased to continue our longstanding collaboration with the Inter-American Development Bank in structuring and executing innovative financial solutions. This aligns with the G20’s call for Multilateral Development Banks to work together as a system to expand development impact for our member countries,” Dr Adesina said.

Inter-American Development Bank President Ilan Goldfajn highlighted the success of the first agreement signed with the African Development Bank a decade ago.

“This new agreement marks another milestone in our strong and productive partnership with the African Development Bank. Through this operation, we’re enhancing the financial resilience, creditworthiness, and lending capacity of both institutions, a win-win that will benefit the people of Latin America and the Caribbean, as well as Africa,” he added.

SP/MA

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