The African Development Bank Group has recently signed a $3.2 billion Exposure Exchange Agreement with the Inter-American Development Bank (IADB), renewing a previous agreement dating back to 2015. This agreement, signed in Washington DC during the World Bank Group and International Monetary Fund Spring meetings, aims to strengthen the capital adequacy and efficiency of Multilateral Development Banks, ultimately boosting their development lending capacity.
This marks the fourth exposure exchange undertaken by the African Development Bank with other Multilateral Development Banks, showcasing a commitment to innovative strategies for capital management and development lending. Since 2015, these agreements have allowed the African Development Bank to diversify its sovereign portfolio and deploy capital effectively while maintaining financial resilience.
The President of the African Development Bank, Dr. Akinwumi Adesina, emphasized the institution’s forward-looking approach to capital and risk management. He highlighted the positive collaboration with the Inter-American Development Bank in structuring and executing innovative financial solutions, aligning with the G20’s call for Multilateral Development Banks to work together to expand development impact.
Inter-American Development Bank President Ilan Goldfajn echoed the sentiment, noting the success of their previous agreement with the African Development Bank. He emphasized that this new agreement strengthens the financial resilience, creditworthiness, and financing capacity of both institutions, ultimately benefiting the people of Latin America, the Caribbean, and Africa.
Adesina emphasized the importance of Multilateral Development Banks engaging in more transactions like these, citing their proven success and impact. These collaborations are seen as a win-win for all parties involved, ultimately contributing to the development and prosperity of member countries.
In conclusion, the African Development Bank Group continues to demonstrate its commitment to innovative financial solutions and collaboration with other Multilateral Development Banks. These exposure exchange agreements not only strengthen the institutions involved but also have a tangible impact on development initiatives in Africa, Latin America, and the Caribbean.
For media inquiries, please contact Amba Mpoke-Bigg at media@afdb.org. Technical contacts for the Market Risk Division include Sokhna Mbène Kandji at s.kandji@afdb.org, Laone Kesupile at l.kesupile@afdb.org, and Yobou N’Doua at y.ndoua@afdb.org.
