Multinational - West African Development Bank (BOAD) - Line of Credit III


Project Summary

Approval Date 23 Mar 2016
Signature Date 21 Nov 2016
Sovereign / Non-Sovereign Non Sovereign
Sector Finance
DAC Sector Code 24030
Commitment U.A 83,957,416.8
Status Implementation

Project General Description

The project consists in granting to the West African Development Bank (BOAD) a third line of credit of 140 million euros, broken down into two components: (i) a first component of 100 million euros with a 10-year tenor (with a two-year delay) and (ii) a second amounting to 40 million euros with a maturity of 15 years (with a grace period of two years). The first part of the loan is intended to finance structuring projects in sectors considered a priority by BOAD and its Member States (energy, industry, agriculture, etc.). The second component is intended to provide the additional funding necessary for the implementation of a power plant project deemed of crucial importance for the host country. This operation follows a first grant of 40 million euros and a second of 64 million euros fully disbursed and used in accordance with the provisions of the credit agreement. These two initial lines of credit contributed significantly to the good results of BOAD's 2009-2013 Strategic Plan. This new operation will help support the BOAD growth dynamic that is progressively moving towards private sector financing, in a context where the mobilization of concessional resources is increasingly difficult.

Project Objectives

The objective of the project is to strengthen BOAD's financial capacity by granting it a third line of credit (LOC III) to provide the institution with medium and long-term requirements for the consolidation of its development, including its portfolio of private operations. The project will contribute to the achievement of 3 of the 5 pillars of the BOAD 2015-2019 Strategic Plan, namely: (i) accelerate regional integration through sustained financial support for infrastructure development; (ii) support inclusive growth, food security and sustainable development; and (iii) intensification of the resource mobilization process. In particular, the project will enable BOAD to implement its private sector financing strategy targeted at (i) sectors with high potential for job creation (mining, agriculture, industry, services, etc.), especially in rural areas; (ii) increase the value added of regional production; and (iii) export development.

Beneficiaries

The beneficiaries are the eight member states of the West African Economic and Monetary Union (WAEMU): Benin, Burkina Faso, Côte d'Ivoire, Guinea-Bissau, Mali, Niger, Senegal and Togo.

Participating Organization

Funding
African Development Bank

Information

IATI identifier 46002-P-Z1-H00-026
Last Update 05 Dec 2020

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Contact Details

Email private-sector@afdb.org

Geographic Location

Country Multinational