BOAD gets half the amount it needs to double its capital

Banking

Wednesday, 16 February 2022 19:34

BOAD gets half the amount it needs to double its capital

(Togo First) - The West African Development Bank (BOAD), has completed the first stage of its capital increase, raising CFA837 billion, with the support of its main shareholders (regional and non-regional).

“I am pleased to announce that BOAD has completed the first stage of its capital increase for an amount representing more than half of its target of USD 1.5 billion. I would like to thank our shareholders for this support,” Serge Ekué (photo), President of the BOAD, said on February 16.

Besides regional shareholders (WAEMU’s eight member states) which led the Series A round, the Central Bank of West African States (BCEAO) also contributed to the fundraising, according to BOAD.

They should be followed by non-regional shareholders (Series B), which are Germany, the African Development Bank (AfDB), the European Investment Bank (EIB), China, France, Belgium, and Morocco. These shareholders also support growth in the BOAD and WAEMU countries. The AfDB, France, and Morocco are especially expected to contribute to the Bank’s capital increase.

“The success of this joint mobilization of the Bank's regional and non-regional shareholders is an essential first step in enabling the institution to raise its capital and deploy its strategic plan for the next five years,” the BOAD indicated.

The BOAD’s project to double its capital is part of its Djoliba plan approved in September 2020 by its Board of Directors. This plan will allow the lender to ramp up its commitments to the WAEMU’s states and private companies by more than 50% over the next five years.

Concretely, the Djoliba plan should enable the BOAD to provide up to $4 billion in financing to WAEMU’s economies, with a focus on the five following sectors: infrastructure, energy, agriculture, and food security, health and education, tourism-oriented real estate, and social housing.

Ayi Renaud Dossavi

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