AfDB approves $10.4 bn borrowing programme due to COVID-19 crisis

Doaa A.Moneim , Monday 21 Dec 2020

Some 40 million more people are expected to be pushed into poverty because of the pandemic, reported Atlantic Council

AfDB

The African Development Bank (AfDB)’s Board of Directors has approved its 2021 Borrowing Programme, allocating $10.4 billion to be raised from capital markets, the bank announced on Sunday.

The programme allows the bank to raise funds in debt capital markets to finance its projects in Africa.

The AfDB is active in various international capital markets, including the US dollar, euro, Australian dollar, and pound sterling.

The bank will continue to promote the development of African capital markets with the issuance of local currency denominated debt to facilitate the financing of its local currency operations, alongside other initiatives, said the bank.

The AfDB added that it continues to be a regular issuer of green and social bonds, as highlighted by its award winning and landmark $3 billion, three-year “Fight Covid-19” social bond earlier in 2020.

The AfDB said it has continued to use its "High 5" operational priorities as a platform to issue 19 theme bonds, including Improve the Quality of the Life for the People of Africa and Light Up and Power Africa bonds.

COVID-19 has left a severe economic impact on Africa, dragging the continent into its first recession in two decades, according to a recent report issued by the Atlantic Council.

The council estimated these impacts at $115 billion in output to be lost. About 40 million more people will be pushed into poverty.

“Africa’s resilient recovery will rely on a sustained health response, collective efforts to boost fiscal space, and the pursuit of innovative financing and policy. But, fortunately, the pandemic does not undo Africa’s vibrant underlying growth dynamics, and pan-African efforts have emerged in both the public and private sectors to help weather the COVID storm,” the report stated.

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