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Arab Bank for Economic Development in Africa (BADEA) acquires equity interest in West African Development Bank (BOAD)

The West African Development Bank (BOAD) (https://www.BOAD.org/) is excited to announce the addition of the Arab Bank for Economic Development in Africa (BADEA) to its capital.

After receiving a favorable opinion from the Bank’s Board of Directors at its 139th meeting on 20th December 2023 in Cotonou, the WAMU Council of Ministers approved BADEA’s participation in BOAD’s capital on 21st December 2023. This marks the start of the second phase of the Bank’s capital increase process, following the completion of the first phase in December 2022 for an amount of XOF554.38 billion.

The BOAD capital increase process, known as the “Peninsula” project, consists of two phases: the first phase involves the issuance of shares reserved for the Bank’s current shareholders, and the second phase involves the issuance of shares open to new shareholders, subject to approval by the Council of Ministers as per BOAD’s Articles of Association. BADEA’s participation in the Bank’s capital as a class B shareholder (non-regional shareholder) is part of this second phase, involving an amount of US$30 million, or XOF18.47 billion. This represents 1.20% of BOAD’s subscribed share capital, giving BADEA a seat on its Board of Directors.

Established on 28th November 1973 and operational since March 1975, BADEA is a financial organization headquartered in Khartoum (Sudan) and aims to be a “world bank for Africans”, consisting of 18 member countries including Saudi Arabia, Kuwait, Iraq, Libya, the United Arab Emirates, and Qatar. It is rated Aa2 with a positive outlook by Moody’s.

The two institutions are expanding their longstanding cooperation by BADEA’s participation in BOAD’s capital. The cooperation has already included the provision of resources on preferential terms by BADEA and the co-financing of several infrastructure projects in WAEMU countries, as well as subsidies to BOAD to support structuring projects.

President Serge Ekué stated, “BADEA’s participation as a new shareholder follows 10 years after the Kingdom of Morocco joined BOAD’s capital in 2013. This was the result of a series of discussions over the past two years. It is the translation of excellent relationships between both of our institutions, but also the result of a perfect common understanding between the President of BADEA, my dear friend and brother, Mr. Sidi Ould Tah, to whom I wish to pay a heartfelt tribute. My warmest congratulations to our respective technical teams”.

Distributed by APO Group on behalf of Banque Ouest Africaine de Développement (BOAD).

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About the West African Development Bank:
The West African Development Bank (BOAD) is the common development finance institution of the member countries of the West African Economic and Monetary Union (WAEMU). It is an international public institution whose purpose, as provided under Article 2 of its Articles of Association, is to promote the balanced development of its member countries and foster economic integration within West Africa by financing priority development projects. It is accredited to the three climate finance facilities (GEF, AF, GCF). Since 2009, BOAD sits as an observer at the UNFCCC and actively participates in discussions on devising an international climate finance system. Since January 2013, it has been home to the first Regional Collaboration Centre (RCC) on Clean Development Mechanism (CDM), whose aim is to provide direct support to governments, NGOs and the private sector in identifying and developing CDM projects.

Since 15 October 2023, the Bank, together with Bancoldex (the Colombian Business and Export Development Bank), has co-chaired the International Development Finance Club (IDFC), which brings together 26 national, regional and multilateral development banks from around the world.

 

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