By resolution of the Board of Governors dated 7 April 2022 – BADEA announced an increase of its authorised capital by 376% from USD 4.2 Billion, to USD 20 Billion. The historic capital increase was unanimously adopted by all the bank’s 18 sovereign shareholders – members of the League of Arab States.
The new capital structure will constitute total authorised capital of USD 20 Billion, of which USD 10 Billion is subscribed and USD 5 Billion paid in. This increase puts the bank’s capital base and overall structure at par with other highly rated multilateral development banks. The bank is rated Aa2 with positive outlook by Moody’s Investors Service and this marks the first time that callable capital has been introduced in its capital structure since its establishment 48 years ago.
« The bank is an important catalyst for Arab-Africa Cooperation through financing priority development projects, facilitating trade, and providing technical assistance »
“The bank is an important catalyst for Arab-Africa Cooperation through financing priority development projects, facilitating trade, and providing technical assistance. We remain committed to support all its capital needs, so that it can continue to achieve the noble objectives for which it was established” said H.E. Dr. Fahad Abdullah Aldossari, Board Chairman.
« Today’s capital increase is a clear testimony of this ongoing legacy of unwavering shareholder support through cash capital injections as well as callable capital »
H.E. Dr. Sidi Ould Tah, Director General said “In the 48 years since establishment, BADEA has financed over 730 projects and provided more than 890 technical assistance grants across 44 Sub Saharan African countries that often struggle to attract competitive funding. All this was achieved using only shareholder funds, and the bank has never had the need to borrow from the markets – thanks to this outstanding support from our shareholders. Today’s capital increase is a clear testimony of this ongoing legacy of unwavering shareholder support through cash capital injections as well as callable capital.”
BADEA is a multilateral financial institution headquartered in Khartoum, Republic of the Sudan. The Bank – owned by 18 sovereign states, members of the League of Arab States was established on 18th February 1974 and began operations in March 1975 providing finance and technical assistance for economic development exclusively in Sub Saharan Africa. BADEA works to facilitate and catalyse the flow of Arab and other external capital and investments into Africa. Since 2015, the bank also expanded its focus on trade – both Arab-Africa trade as well as IntraAfrica trade. The Bank is an independent International Institution enjoying full international legal status and complete autonomy in all matters, governed by the provisions of its Establishing Agreement and the principles of international law.
The Bank was created for the purpose of strengthening economic, financial, and technical cooperation between the Arab and African regions and for the embodiment of Arab African solidarity on foundations of equality and friendship and remains one of the very few multilateral development banks whose mandate is to serve non-shareholder countries funded exclusively with shareholder funds and with no debt.
For more information :https://www.badea.org/index.htm
