AfDB, ADB sign $1 Billion exchange exposure agreement to increase development lending capacity to African nations

The African Development Bank (AfDB) and the Asian Development Bank have signed a $1 billion Exposure Exchange Agreement (EEA) to bolster AfDB's capital resources and sustainable lending across Africa.

This transaction, the third under AfDB’s Balance Sheet Optimization strategy, aims to reduce portfolio concentration risks and support AfDB's lending across member countries.

The deal follows similar agreements with the Inter-American Development Bank and the International Bank for Reconstruction and Development, bringing AfDB’s total exposure exchange agreements to $6.5 billion.

The agreement enhances multilateral cooperation, aligning with the G20’s call for optimized development financing.