Washington DC: The African Development Bank (AfDB) has renewed a 3.2 billion U.S. dollar exposure exchange with the Inter-American Development Bank (IADB) aimed at strengthening capital efficiency, boosting development lending, and enhancing global financial resilience.
According to Ethiopian News Agency, the agreement was signed in Washington DC on the sidelines of the World Bank Group and International Monetary Fund Spring meetings. This renewal follows the original agreement executed between the two institutions in 2015.
This is the fourth exposure exchange undertaken by the African Development Bank with other Multilateral Development Banks. The initiative is part of a continuous effort to strengthen the capital adequacy and efficiency of Multilateral Development Banks and to enhance their development lending capacity.
Since 2015, the African Development Bank has utilized these agreements to diversify lending within its sovereign portfolio, effectively deploying capital while preserving a resilient financial base. This tool ensures the bank remains agile, well-capitalized, and committed to innovation in support of development in Africa.
Today’s transaction follows previous successful agreements between the African Development Bank and other Multilateral Development Banks, including the International Bank for Reconstruction and Development and the Asian Development Bank. It underscores the African Development Bank’s forward-looking approach to capital and risk management.
Dr. Akinwumi Adesina, President of the African Development Bank, expressed pleasure in continuing collaboration with IADB, emphasizing the alignment with the G20’s call for Multilateral Development Banks to expand development impact. IADB President Ilan Goldfajn highlighted the success of the first agreement with AfDB and the benefits for both institutions and their respective regions.
Adesina stressed the importance of such transactions, highlighting their proven success and impact in the sector.