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The African Development Bank (AfDB) this week approved a $ 250 million equity-free venture capital (RPA) agreement with ABSA Bank.
This APR, hosted in ADB Financing Operations
Once fully utilized, estimates indicate that the facility will catalyze exchanges worth more than $ 2 billion in three years.
The alignment of the facility responds to acute market demand Financing trade in Africa through agriculture, transportation and manufacturing is in line with AfDB objectives of to ensure that Africa industrializes and markets more.
By extension, this RPA will also promote the development of the financial sector and regional integration.
Presenting the project to the ADB Board of Directors, the director of financial sector development Stefan Nalletamby presented strong arguments in strategic partners like ABSA, the RPA instrument ADB continues to facilitate trade on the continent; "This facility, thanks to a 50/50 risk-sharing approach, will help promote widespread economic growth on the African continent through increased facilitation of import-export activities by African and small and medium-sized enterprises. businesses, and increase intra-African trade and regional financial integration in line with the AfDB's Hi5 strategic objectives, "he said.
Under the APR, the ADB and ABSA will share the default risk on a portfolio of eligible commercial transactions issued by African issuing banks and compensated by ABSA.
The ADB's commitment under the APR is to badume up to 50% of each underlying transaction issued by said African issuing banks, while ABSA will confirm such a transaction. bear at least 50% of its underlying risk.
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