The African Development Bank Group (AfDB) and Inter-American Development Bank (IDB) have signed a $3.2 billion Exposure Exchange Agreement, thereby renewing a prior agreement originally executed between the two institutions in 2015.
The agreement was signed by the development finance institutions’ representatives on the sidelines of the just concluded 2025 World Bank Group and International Monetary Fund Spring meetings in Washington D.C.
The latest deal is the fourth exposure exchange undertaken by the AfDB with other Multilateral Development Banks (MDBs) in furtherance of their pursuit of innovative ways of strengthening the capital adequacy and efficiency of the banks, as well as boosting their development lending capacity.
A news report from African Press Organisation (APO) Group circulated on behalf of the AfDB indicated that since 2015, the Bank had used these agreements to diversify lending within its sovereign portfolio and deploy capital effectively while preserving a resilient financial base.
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The news report stated that the tool ensured the AfDB remains agile, well-capitalized, and committed to innovation in support of development in Africa.
The pact followed previous successful agreements between the AfDB and other MDBs), including the International Bank for Reconstruction and Development and Asian Development Bank.
Speaking on the agreement, the AfDB’s President, Dr Akinwumi Adesina, said: “This transaction underpins the African Development Bank’s forward-looking approach to capital and risk management.
“We are pleased to continue our positive longstanding collaboration with Inter-American Development Bank in structuring and executing innovative financial solutions to align with the G20’s call for Multilateral Development Banks to work together as a system in expanding development impact to our member countries”, the banker stressed.
Adesina charged the MDBs to do more of such transactions because of their proven success and impact.
In his remarks, Inter-American Development Bank President, Ilan Goldfajn, recalled the success of the first agreement signed with the AfDB 10 years ago, saying that “this new agreement marks yet another milestone in our strong and fruitful collaboration with the African Development Bank.
“Thanks to this operation we’re strengthening the financial resilience, creditworthiness, and financing capacity of both of our institutions. A win-win for all, that will benefit the people of Latin America and the Caribbean and Africa”, Goldfajn added.
