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1 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 2
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6 AFRICAN DEVELOPMENT BANK (ADB) AFRICAN DEVELOPMENT FUND (ADF) NIGERIA TRUST FUND (NTF) Commercial TermsConcessional Terms The African Development Bank Group
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The Bank –AAA rated supranational organization leading continent-wide initiatives to promote development in Africa 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 8
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10 Sovereign Guaranteed Loans (SGL) Non- Sovereign 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 MaturityUp to 20 yearsUp to 15 years Grace PeriodUp to 5 years Disbursement ProfileBased on project need and pre-set conditions of loan agreement Repayment TermsEqual installments, Annuities, Bullet, Step-up or Step-down amortization Standard Loans
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AfDB’s operations in 2008 11
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ADB Pricing 14
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15 On 21 January 2009, the Board of Directors approved some amendments in the menu and pricing of the Bank’s financial products. These changes are applicable to Sovereign Guaranteed Loans and relate to the following items: Temporary suspension of the Fixed Spread Loan (FSL) products for new commitments and Re-introduction of a Variable Lending Spread (VSL), based on the Bank’s average cost of borrowings in the relevant currency; Maintenance of the contractual lending spread at 40 basis points; Semi-annual review of the pricing policy. In particular, examining the possibility of reintroducing FSL if market conditions permit;
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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 Sovereign Guaranteed Loans - Pricing 16
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ADB response to the Global Financial Crisis 17
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ADB in Egypt 19
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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 20
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