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Presentation Outline
1. Presentation of ADB group
2. ADB Pricing
3. ADB response to the Global Financial Crisis
4. ADB in Egypt
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Presentation of ADB group
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The African Development Bank Group
AFRICAN DEVELOPMENT
BANK
(ADB)
AFRICAN DEVELOPMENT
FUND
(ADF)
Commercial Terms
NIGERIA TRUST FUND
(NTF)
Concessional Terms
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The Bank –AAA rated supranational organization leading
continent-wide initiatives to promote development in Africa
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Committed shareholders
Preferred creditor status
Strong risk bearing capacity
Consistently strong financial results
Prudent risk management policies
Highest ratings
Aaa/ Moody’s AAA / Japan Credit Rating Agency
AAA / Fitch Ratings AAA / Standard & Poor’s
Rare issuer status and safety with yield
Funding needs in capital markets: 2009 -US$ 3.7 billion
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Standard Loans
Sovereign Guaranteed
Loans (SGL)
NonSovereign Guaranteed
Loans (NSGL)
Eligible Borrowers
-Government or Regional
Member Countries (RMC)
-Public Sector Companies
or RMCs with sovereign
guarantee
-Public Sector Companies
without sovereign guarantee
-Private Sector Companies
Maturity
Up to 20 years
Up to 15 years
Grace Period
Up to 5 years
Up to 5 years
Disbursement Profile
Based on project need and pre-set conditions of loan
agreement
Repayment Terms
Equal installments, Annuities, Bullet, Step-up or Step-down
amortization
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AfDB’s operations in 2008
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ADB Pricing
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On 21 January 2009, the Board of Directors approved some amendments in the
menu and pricing of the Bank’s financial products.
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These changes are applicable to Sovereign Guaranteed Loans and relate to the
following items:
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Temporary suspension of the Fixed Spread Loan (FSL) products for new
commitments and
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Re-introduction of a Variable Lending Spread (VSL), based on the Bank’s
average cost of borrowings in the relevant currency;
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Maintenance of the contractual lending spread at 40 basis points;
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Semi-annual review of the pricing policy. In particular, examining the
possibility of reintroducing FSL if market conditions permit;
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Sovereign Guaranteed Loans - Pricing
Variable Spread Loan (VSL), based on the Bank’s average
cost of borrowings relative to Libor in the relevant currency.
Lending rate = Libor + Funding Margin + 40 bps
Lending rate = Fix Rate + Funding Margin + 40 bps
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ADB response to the
Global Financial Crisis
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ADB in Egypt
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The Bank has a long and an
active lending record and
project
implementation
experience with Egypt, one of
its major shareholders. Since
1974 the Bank has financed
fifty operations
The Bank’s active portfolio
consists of 11 projects with
total commitment value of
approximately UA1.3 billion.
The
Bank’s
operations
concentrated
heavily
on
infrastructure development and
financial sector support
Fig.1 Sectoral Commitments
(April 2009)
Private
sector
support
13%
Social
Developmen
t&
Protection
5%
Transport
6%
Water
0%
Financial
sector
support
25%
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Energy
51%