AfDB Financial Products
Throughout the years, AfDB has regularly developed financial solutions that respond to the evolving needs of its diverse clients.
AfDB offers long-term debt to both the public and private sector clients. These lending instruments can be accompanied by derivative-based hedging solutions called Risk Management Products (RMPs), which are embedded in certain loans or offered to clients as a standalone product, allowing them to hedge themselves against interest, foreign exchange and commodity price risks as needed.
Building on its international standing and top-notch credit ratings, the AfDB has been offering guarantee products since 2000 to mitigate and share risks with its clients and partners, catalyzing both public and private sector investments into Africa. In 2013, the Bank tailored specific lending and guarantee products for trade finance, contributing to bridging the gap in continental regional integration and access to critical goods and services.
The ADB window can also take direct equity positions, in the case of highly strategic or multinational projects or corporations, but also indirect equity participations in various entities,. This brings long-term capital to build and develop strategic and high impact public and private sector companies or national and regional DFIs in Africa. AfDB also provides equity or quasi-equity through subscriptions to private equity funds, other fund types or portfolio vehicles.
Grants are available to countries eligible to access the ADF window in cases where loans are not possible due to a fragile national debt sustainability position, for example, when countries are deemed to be in high risk of debt distress or in debt distress. Grants and other products are also available under various donor-sponsored trust funds hosted or implemented by AfDB to finance technical assistance, including learning, feasibility studies and project preparation and in some cases even direct project investment financing.
A brochure is available here, which provides a comprehensive summary of the different financial products offered by the African Development Bank Group.
