The African Development Bank (AfDB) was recognized for its first hybrid capital issuance in January 2024, a notable innovation that earned it the title of Development Financial Institution of the Year at the TXF GLOBAL 2024 conference on financing exports, projects and development.
The bold hybrid capital issue of $750 million, over a period of 10.5 years, marks a significant step forward for the AfDB. This issuance sets a new benchmark, paving the way for a new asset class of hybrid offerings for multilateral development banks. Hassatou N’Sele, AfDB Vice-President in charge of Finance, expressed the institution’s desire to continue exploring financial innovations in order to strengthen its capacity to fulfill its development mandate, in response to the G20 challenge.
The Executive Board of the International Monetary Fund (IMF) approved the use of Special Drawing Rights (SDRs) for the acquisition of hybrid capital instruments by multilateral development banks on June 11. This initiative is led by the AfDB and the Inter-American Development Bank, promoting increased support for economic development in Africa.
The TXF Global 2024 conference, held in Athens on June 11 and 12, brought together more than 1,500 key players in international financing. This gathering provided an ideal platform to highlight the AfDB’s innovations and successes in economic development, highlighting its crucial role in providing finance and expertise to support sustainable growth in Africa.
The recognition of the TXF Global 2024 highlights the AfDB’s commitment to promoting economic development through bold and innovative initiatives aimed at reducing poverty and improving the living conditions of African populations.
