The African Development Bank (AfDB) has received the Development Finance Institution (DFI) of the year award at the TXF GLOBAL 2024 Export, Project & Development Finance Conference, for being at the forefront of multilateral development bank (MDB) innovation.
The Bank was recognized for its first hybrid capital issuance made in January this year. The $750 million 10.5-year perpetual non-call hybrid capital issuance has not only established a promising benchmark but also signalled what could be the first in a new asset class of MDB hybrid offerings, in alignment with recommendations from the G20 Capital Adequacy Framework Review.
TXF Global 2024 conference, hosted by TXF (export finance), Proximo (project finance), and Uxolo (development finance), brought together over 1500 representatives from export credit agencies, development finance institutions, exporters, borrowers, project sponsors, SOEs, government ministries, commercial banks, private market insurers, brokers, law firms and institutional investors. The conference was held in Athens from 11-12 June.
Receiving the award, African Development Bank Vice-President for Finance and Chief Financial Officer, Hassatou N’Sele said she was delighted by the recognition. “The Bank is very keen to continue to explore financial innovations to boost its capacity to deliver on its development mandate, especially in the context of the G20 challenge to MDBs to be bigger, better and bolder,” she said.
The award underlines the African Development Bank’s commitment to and effectiveness in promoting economic development in Africa, and the crucial role it plays in providing financing and expertise to support sustainable economic growth, reduce poverty, and improve the living conditions of Africans.
The recognition follows the International Monetary Fund (IMF) Executive Board’s approval of the use of Special Drawing Rights (SDRs) for the acquisition of hybrid capital instruments by MDBs on June 11th, an initiative championed by the African Development Bank and the InterAmerican Development Bank.
