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Investor Presentation The African Development Bank Group
February 2016
Table of contents
• Overview of the Bank Group 3
• Financial Profile of the African Development Bank 23
• Capital Market Activities 37
• Appendix A. Financial Statements 47
B. Green Bonds 50
1
2
3
4
2
The African Development Group
3
Africa is a continent of contrast, rich in natural resources yet its people are among the poorest in the world. The image of Africa that gets projected in the world is that of a continent with disease, hunger, corruption and the need for aid beyond foreseeable future. But, there is another story that is less told which acknowledges the challenges faced by the continent but also recognizes the progress made in terms of more children going to school, less war, growing quest for better governance and an expanding middle class. The African Development Bank is part of that story.
Overview of the Bank Group 1
Africa’s premier development financial institution
• Board of Governors: • Highest decision making body, • Composed of Ministers of Finance
and Ministers of Cooperation of the Bank’s member countries
• Decisions by both Boards require two third majority or 70% should any member require so
…focused on combating poverty, and improving living conditions on the continent
Governance and Oversight
• Board of Directors : • 20 Executive Directors elected by
the Board of Governors • Oversees the general operations of
the Bank
African Development Bank (“AfDB”) • Established in 1964 • 80 member countries • Authorized capital: US$ 94 billion* • Resources raised from capital markets • 0% risk weighting under Basel II • Level 1 under Basel III
African Development Fund (“ADF”) • Concessional financing, established in
1972 • Financed by 27 State participants and 4
regional donors • Subscription: US$ 39 billion • Focus on low income countries • Replenished every 3 years
Nigeria Trust Fund (“NTF”) • Established in 1976 by Nigeria • Targeted at the Bank’s needier
countries • Maturing in 2018 • Total resources: US$ 242 million
The AfDB Group: three constituent institutions, separate legally and financially, with a common goal…
4
* September 2015
50 years of partnership for the development of Africa
Americas
Argentina 0.1%
Brazil 0.4%
Canada 3.8%
U.S.A 6.6%
Algeria 4.2%
Angola 1.2%
Benin 0.2%
Botswana 1.1%
Burkina Faso 0.4%
Burundi 0.2%
Cameroon 1.1%
Cape Verde 0.1%
Cent.Afr.Rep. 0.0%
Chad 0.1%
Comoros 0.01%
Congo 0.5%
Cote D'ivoire 3.7%
Dem.Rep.Congo 1.3%
Djibouti 0.02%
Egypt 5.4%
Eq.Guinea 0.2%
Eritrea 0.03%
Ethiopia 1.6%
Gabon 1.2%
Gambia 0.2%
Ghana 2.1%
Guinea 0.4%
Guinea Bissau 0.02%
Kenya 1.4%
Lesotho 0.1%
Liberia 0.2%
Libya 3.3%
Madagascar 0.6%
Malawi 0.3%
Mali 0.4%
Mauritania 0.1%
Mauritius 0.7%
Morocco 3.5%
Mozambique 0.6%
Namibia 0.3%
Niger 0.3%
Nigeria 8.9%
Rwanda 0.1%
Sao Tome & P. 0.1%
Senegal 1.0%
Seychelles 0.03%
Sierra Leone 0.2%
Somalia 0.03%
South Africa 4.9%
South Sudan 0.5%
Sudan 0.3%
Swaziland 0.1%
Tanzania 0.8%
Togo 0.2%
Tunisia 1.4%
Uganda 0.5%
Zambia 1.2%
Zimbabwe 2.0%
Africa
Europe
Austria 0.4%
Belgium 0.6%
Denmark 1.2%
Finland 0.5%
France 3.8%
Germany 4.1%
Italy 2.4%
Luxembourg 0.2%
Netherlands 0.9%
Norway 1.2%
Portugal 0.2%
Spain 1.1%
Sweden 1.5%
Switzerland 1.5%
U.K. 1.7%
Middle East
Kuwait 0.5%
Saudi Arabia 0.2%
Turkey 0.1%
China 1.1%
India 0.2%
Japan 5.5%
Korea 0.5%
Asia
G-7 Shareholding: 28%
Turkey became the 78th member of the AfDB in 2013,
Luxembourg became the 79th member in 2014, and South
Sudan became the 80th member in April 2015
Shareholding as of December 2015
5
The Bank Group addresses the diverse needs of the continent Preserving the long-term financial integrity of the AfDB
ADF Concessional Financing 34 low-income countries eligible to loans and grants
Access to both ADB and ADF 4 countries eligible for both AfDB and ADF Funding (Cameroon, Kenya, Nigeria, Zambia)
AfDB Sovereign Operations 16 middle-income countries eligible to receive AfDB funding Criteria: • GNI per capita • Country’s creditworthiness
6
Additionality and Development Outcome Assessment-Core
indicators • Job creation • Government revenues • Financial return • Foreign currency earnings
Enclave Finance Self-sustaining, export oriented
project, located in an ADF-eligible country
Private Sector Operations Viable enterprises and multinational projects, additionality and development outcome • Direct loans • Lines of credits • Equity participation • Guarantees
Revised credit policy • Finance viable projects & respond proactively to
improved economic conditions in RMCs • Allow eligible ADF countries with low and
moderate risk of debt distress access to the Bank’s sovereign window
Measuring success by the lasting changes we bring to the lives of the African people
Link remote areas to growth poles through better infrastructure
Create employment opportunities through the development of private sector
Create wealth by building human capital and skills
Private sector development
Governance Skills &
technology
Infrastructure development
Regional integration
Enhance deeper regional integration
Strengthen governance for a sound use of public resources
Fragile States Agriculture & Food Security
Gender
A Ten-Year Strategy to transform the continent
Access to economic opportunities across age, gender, ethnicity and geography
Provision of social safety nets
Inclusive growth
Preserve the environment and natural resources on which economies depend
Gradual transition to green growth
7
8
AfDB’s High fives
AfDB’s new five-point vision in Post-2015 Development Agenda
Bridging the infrastructure challenge
Reduced travel time, lower accident rates
Reduced vehicle maintenance costs and prices of goods
Easier access to health, school and administrative facilities
Improved education enrollment rate, in particular that of girls
Economic activities boosted, new businesses and jobs created
Kankan Kouremale – Bamako transnational road network in Mali with a link to Guinea. Project size: USD 148 million – AfDB financing: USD 35 million
9
The road and its electrical facilities have made a difference in the life of
Djenebou Diakité, a fruit vendor near the road
intersection. She can now work longer “Up to
midnight sometimes, there are customers,
thanks to public lighting. And my own expenses have been reduced as I no longer need to bring
along my flashlight to use when the sun sets.“
Between 2005-2014: USD 28 billion in infrastructure approvals
Between 1964-2004: USD 18 billion in infrastructure approvals
USD 11.0 billion
Energy
USD 11.2 billion
Transport
USD 4.2 billion
Water & Sanitation
USD 1.6 billion
ICT
The Sahel Program Approved in 2014 and centered on building climate resilience,
regional integration and trade facilitation through infrastructure development and capacity building in Burkina Faso, Chad, Gambia, Mali, Mauritania, Niger, and Senegal
Addresses fragility and builds the resilience of vulnerable populations against food and nutrition insecurity while promoting regional integration
Since 2010, Intra-African
trade up 18% to USD 148 million
Represents 12% of total exports vs 25% in Southeast Asia, 49% in North America and 65% in the European Union
Achievements over the past decade… More than 70 multinational
projects financed for USD 3.8 billion
Spearheading public-private partnership in infrastructure development
Creating larger and more attractive markets
African Export-Import Bank USD 262 million approved in
2014 to cover lines of credit, trade finance and risk participation
Promotes intra-African and extra-African trade
Regional integration strategy and policy
Regional integration for Africa’s full growth potential
10
An honest broker for private sector development
Funding soft and hard infrastructure, transport, telecom, water and power
Giving access to power
Policy environment
Supporting government efforts to strengthen the laws, tax systems and policies that govern business environment
Institutional & regulatory framework
Help fight corruption, promote financial transparency and develop the informal sector
Financial markets
Help government plan infrastructure investments, deepen and expand financial markets, strengthen labor markets and build business skills
Providing access to capital
Supporting enterprise capacity & competitiveness
Promoting value chain & linkage
11
Private sector delivering service and providing opportunities
South Africa’s rail company: Transnet
ZAR 312 billion (USD 28.6 billion) with AfDB financing USD 247 million
Nigeria: Dangote oil refinery and fertilizer plant
Total cost of USD 9 billion with AfDB financing USD 282 million
Expected outcomes: Provide over 32,000 jobs Save USD 65 billion in foreign exchange Government to receive USD 1.08 billion in revenues
from taxes and fees
Expected outcomes: Increase freight capacity Create 6,146 jobs Generate USD 650 million in government revenue Transport and logistics costs reduced by 4% - 7%
12 As of 31 December 2014
Equity Funds 9%
Commercial Banks 19%
Development Finance Instutions
14%
Trade Finance 11%
Others 2%
Energy 18%
Transport 8%
Telecoms 2%
Mining 9%
Agribusiness 5%
Manufacturing 3%
Initial program of
USD 1 billion in 2005
Second program for USD 2 billion
Credit lines to the Bank from JICA for onlending to
the private sector
Accelerated Cofinancing Facility with JICA
Technical grants for private sector assistance
Expanding private sector operations
Enhanced Private Sector Assistance for Africa
13
SPECIAL INITIATIVES
14
Africa Growing Together Fund
• Resources of USD 2 billion made available over a 10-year period for co-financing purposes • 80% to finance sovereign guaranteed operations • 20% to finance non-sovereign guaranteed operations
Africa Growing Together Fund
Financial cooperation framework to support infrastructure, regional integration and private
sector operations
AGTF is a special Fund for
facilitating economic growth
and enhancing cooperation with
China Allows the Bank to scale up its
development impact and footprint in a constrained global
financial environment
A new avenue for development SPECIAL INITIATIVES
Strengthen transparency, accountability and tackle
procurement-related corruption
Comoros: USD 6 million to increase transparency and accountability in the sector
through the publication of financial statements, regular auditing, performance measurement contracts and fraud control
Over 100 projects since 2008, resulting in better macroeconomic management, increased tax revenue,
more foreign direct investment, and less time required to start a business
Strengthen governments’ capacity for
transparent and accountable use of public resources and citizens’ ability to
hold governments to account
Guinea: USD 17 million to implement financial reform, increase
tax revenue, support the government in improving economic
planning and enhancing transparency in the use of resources
Strengthen legal and institutional frameworks to foster
private-sector development
Burkina Faso: USD 58 million to encourage growth in micro, small, and
medium sized enterprises. The project will support the
creation of business incubators, credit guarantee schemes and export
promotion agencies
Good governance is moving Africa forward
Public sector and economic management
Sector governance
Investment and business climate
USD 761 million for 24 operations approved in 2014 across 19 countries
15
Building skills, developing entrepreneurship, and promoting equal opportunities
Social Cohesion and Enhancement Support Program in Côte d’Ivoire (USD 43 million) to improve social inclusion to address damages caused by past conflicts Expected outputs: (i) reintegration of about 15,500
ex-combatants (ii) demarcation of land for about 1,760
village communities to benefit at least 3.5 million people
(iii) free medical care for women victims of gender based violence
Human Development Portfolio
USD 1.8 billion for 77 projects covering education, health, poverty reduction, and social protection (Eritrea, Kenya,
Tanzania, Uganda)
Harness the potential of a billion Africans
16
Strengthening agriculture and food security
Reducing fragility, increasing rural household incomes & welfare and empowering women in rural areas
Strong support extended following the 2007-08 food crisis in Africa through short and medium-term
assistance to 27 countries
Koulikoro Region (Mali) Food and Nutrition Security Enhancement Project (USD 54 million)
Participatory and sustainable development of agricultural infrastructure to boost food crop production, conservation, marketing and consumption
Reduce poverty for 178,000 persons Increase agricultural output (10,600 tons of rice and 20,300
additional tons of vegetable produce) Develop specific gender actions including land tenure
AfDB’s commitment
USD 3.74 billion approved over the past 10 years
Smart water management and
multi-sectoral measures for sustainable growth
and resilience to climate change
Forest preservation and tree planting to mitigate climate change, improve watersheds, control soil
erosion and conserve biodiversity
Building dams and infrastructure to
promote irrigated agriculture
Rehabilitation of agricultural water
facilities
Improving access to markets by constructing rural roads, markets and storage facilities
17
Support member countries to develop agricultural value chain infrastructure
Encourage the development of agribusiness and innovation
Promote resilience and the sustainable management of natural resources, including managing the environmental impacts of agricultural activities
Women make up half the population but earn 33% less than men, and hold only 10% of the leadership roles in the society
Greater investment in women has wider economic effects on the collective interest, as they invest more in health and the education of their children
Empowering women to play a greater role in government, society and the economy
Our commitment
Strengthen women’s legal and property rights
Promote women’s economic empowerment through increased access to and control over financial resources and services
Enhance knowledge management and capacity building on gender equality
Developing a range of interventions to benefit women, including cash transfer programs, early childhood development, and microfinance for women farmers
Supporting the emergence of women scientists as leaders in their
communities and role models for a new generation of African girls
‘50 Million African Women Speak’, a technology platform to boost financial
inclusion of women entrepreneurs
18
Projects and programs of the Bank
attuned to gender issues
Gender mainstreamed into internal structures
and processes of the Bank
Will directly benefit 15.3 million people by improving their incomes, food security and access to basic social infrastructure
Program to rehabilitate and strengthen resilience of Lake Chad basin ecosystems – USD 103 million project with USD 78 million funded by the Bank
Region affected by insecurity, droughts, refugee and migrant influx, high youth
unemployment, dwindling water resources, and ecosystems stressed by climate change
Preserving and developing water
resources
Developing ecological services and value chains
Institutional capacity building and
program management
A systematic approach to tackle fragility
Leadership role in policy dialogue, partnerships and advocacy around issues of fragility
Promoting resilient societies through inclusive and equitable access to employment, basic services and shared benefits from natural-resource endowments
Strengthening state capacity and establishing effective institutions
Addressing fragility and building resilience
19
USD 223 million
approved to fight and prevent
Ebola
Post-Ebola livelihoods restoration project
Restore agricultural production systems and livelihoods for farm households
Reopen health facilities & provide psycho-social support
Develop skills and technology Create a Social Investment Fund to strengthen
economic support systems Strengthen regional surveillance systems jointly
with West African Health Organization and Mano River Union
African Center for Disease Control and Prevention led by the African Union
Establish a surveillance and prevention epidemiological center of excellence on the continent
Establish regional centers Enhance early warning systems Harmonize national health regulations
and interventions
AfDB was the first Multilateral Development Bank to respond to the Ebola crisis, and is at the forefront of supporting
affected countries Two more operations under preparation
Additional USD 300 million to support countries’ post-Ebola recovery programs announced in April 2015
Fragility is a concern for all
Providing equipment and emergency support
Establishing nutrition, food security and social
programs
Strengthening public health infrastructure
Training health workers
Road infrastructure
Nigeria
Ivory Coast
Liberia
DRC
Guinea Sierra Leone
20
AfDB’s Climate Change Action Plan 2011-2015
Reducing deforestation and alleviating poverty in the Virunga-Hoyo Region
(DRC)
Improve conservation and management of 1,500 km2 of forest
Contribute to the livelihoods of people through carbon income
Reduce household charcoal use via efficient stoves
Raise environmental awareness and reforestation via school tree nurseries
Committed to invest USD 9.3 billion over the 5-year period 2011-2015
Enhancing Africa’s transition to Green Growth
Power supply to 1.1 million Moroccans by 2018 Lower carbon emissions by 760,000 tons of CO2
per year or 19 million tons over 25 years First phase of the project, NOORo I, fully
operational Help achieve target of 42% of renewable energy
in the country's energy mix by 2020
Africa’s largest concentrated solar power complex increases share of renewables in
Morocco
Strengthen capacity to respond to climate change
Mobilize resources from private sector and market mechanisms to address climate change P
illar
1
Pill
ar 2
Pill
ar 3
21
New Deal on Energy for Africa: a transformative partnership for the continent
22
New Deal on Energy for Africa, an ambitious program to transform Africa
The Noor Solar project, a showcase of the new deal energy
Over 600 million people
in Africa do not have access to
electricity
700 million rely predominantly on solid fuels for cooking
A financing gap of an
estimated USD 55 billion per
year to access energy across the continent
Address financing gap by expanding development finance and attract private investment
New Deal Energy for Africa to catalyze 10 GW of new renewable energy generation capacity by 2020 and at least 300 GW by 2030
Financial Profile of the African Development Bank
The financial position of the AfDB is very strong. Thanks to its solid capitalization, ample liquidity buffers and prudent risk-management framework the institution has the capacity to absorb potential shocks emanating from the turbulent operating environment. The Bank has substantial headroom in risk- bearing capacity to further expand its lending. Continued financial and operational prudence will remain key.
23
The African Development Bank
2
(in USD million) 2010 2011 2012 2013 2014 September
2015**
Assets 29,483 31,107 32,605 32,335 33,251 32,585
Loans 12,596 14,210 16,928 17,842 18,324 17,704
Investments 11,448 11,653 9,971 9,372 10,637 12,188
Borrowings 18,450 19,810 20,408 19,939 20,828 21,656
Equity 7,423 7,494 8,207 8,980 8,809 9,038
Paid-in Capital net of CEAS* 3,377 3,601 4,108 4,581 4,730 5,277
Reserves 4,046 3,894 4,100 4,400 4,079 4,002
Income before distributions 329 253 301 278 220 179
Subscribed Capital 33,600 57,300 100,230 100,424 94,366 91,880
Summary financial information
* Cumulative Exchange Adjustment on Subscriptions
** Unaudited
Note: Data converted from UA (SDR) to USD at period-end exchange rates
Source: AfDB Annual Report/Financial Statements
24
A critical development mandate, a very strong public policy role, a preferred creditor
Prudent governance and management
Solid capital position and adequate earnings
Strong and stable access to funding
A highly rated institution driven to deliver on its mandate
Strong and stable support from shareholders
Preferred creditor status
Ample liquidity
Diversified wholesale funding
profile
Robust capitalization
Sound and solid financial risk management
policies
Aaa/AAA/AAA
25
AAA rating affirmed on 5 August 2015 AAA rating affirmed on 17 August 2015 AAA rating affirmed on 14 September 2015 AAA rating affirmed on 13 August 2015
Systematic credit risk assessment
Sovereign credit ratings are derived from a risk assessment that includes macroeconomic performance, debt sustainability, socio-political factors, business environment and the Bank’s portfolio performance
Non-sovereign credit ratings derived on the basis of several pre-determined critical factors including overall financial strength, industry outlook, competitive position, management strength and host country risk rating
0%
20%
40%
60%
80%
100%
2010 2011 2012 2013 2014
Very Low Risk Low Risk Moderate Risk
High Risk Very High Risk
Non-sovereign portfolio risk profile Sovereign portfolio risk profile
0%
20%
40%
60%
80%
100%
2010 2011 2012 2013 2014
Very Low Risk Low Risk Moderate Risk
High Risk Very High Risk
26
2.57
3.84
2.92
2
3
4
2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 sep-15
Sovereign WARR Non-sovereign WARR Combined WARR
Clearly defined prudential and operational limits aligned with evolving business strategy, risk appetite and risk bearing capacity
Managed credit risks to maximize development impact
Portfolio risk profile
Current weighted average risk rating (WARR) better than our target range of low risk of 3.0 (BB) to moderate risk of 4.0 (B)
A growing portfolio In USD million
27
Increased lending to historically underexposed
countries
Improved average portfolio
risk rating
Favorable social political
development for our major borrowers
Solid portfolio quality
0
3,000
6,000
9,000
12,000
15,000
18,000
2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 Sep-15
Sovereign Non-sovereign Bank Group Approval
Robust capitalization
0
1,000
2,000
3,000
4,000
5,000
6,000
7,000
8,000
9,000
5,325
2,743
1,200
891 392
244 74
-219
5,325
3,418
In USD million
Available risk
capital (38.6%)
8,743
Sufficient capital to support additional lending operations
Risk capital utilized (61.4%)
September 2015
Risk capital utilization ratio stable in 2014 helped by improved diversification and increased risk bearing capacity
Risk capital utilization rate = Σ [[ Exposure] * [Risk capital charge]]/Total risk capital
Risk capital = Paid-in capital + Reserves + Adjustments
28
Reinforcing the foundations of our financial strength
Risk-bearing capacity increased by 39% since 2005
7,432 7,424 7,494
8,207 8,818 8,743
7,178 7,440
6,699 6,257
0
1,000
2,000
3,000
4,000
5,000
6,000
7,000
8,000
9,000
2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 Sep-15
In USD million
Paid-in Capital Reserves
29
Additional paid-in capital of USD 2.2 billion expected from 2015 to 2026
8,673
Protecting investors with conservative policy-based prudential ratios
Leverage and gearing track comfortably within limits
(Limit)
= Σ (Paid-in capital, Reserves, Callable capital of non-borrowing countries rated A- and above)
Usable Capital
= Loans (including undisbursed) + Equity investments and Guarantees / (Unimpaired subscribed capital + Surplus + Reserves)
Gearing
0%
20%
40%
60%
80%
100%
2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 June2015
Debt to Usable Capital ratio Gearing ratio
GCI-VI negotiated as key levels approached 90%
30
USD 1.12 billion allocated to reserves
USD 217 million allocated to the surplus account
USD 1.88 billion allocated to development initiatives
Addressing key continent wide development initiatives…
…to support the needs of low income countries
…to support project preparation and capacity building in middle
income countries
…to provide humanitarian aid
African Development Fund
Middle Income Country Trust Fund
Special Relief Fund
0
50
100
150
200
250
300
350
400
450
500
2005 2006 2007 2008 2009 2010 2011 2012 2013 2014
In USD million
Development initiatives Retained in reserves
Allocable income
Strengthening our capital base and capacity to deliver
Stable internal capital generation
31
USD 3.2 billion of allocable income since 2005
Financial and risk management policies
Conservative principles underlying our asset and liability management
Counterparty credit risk Minimum credit ratings
established for investments Minimum ratings for
derivative counterparties
Interest rate risk Minimized by matching
interest rate characteristics of assets and liabilities
Stabilize net interest margin
Liquidity risk Ability to meet cash flow
requirements for 1-year without access to additional resources
Foreign exchange rate risk Liabilities in any
currency matched with assets in the same currency
Currency composition of net assets aligned with the UA
Financial and risk management
framework consistent with a triple-A
business profile
32
Very strong liquidity position
…debt obligations…
…cash flow requirements…
… loan disbursement requirements…
Conservative liquidity policy is a key strength underpinning our triple-A rating
Ability to meet our debt service is the backbone of our creditworthiness
33
Targeting high-quality assets
ADB investment portfolio by currency
59% 9%
USD GBP Other
28%
EUR
AAA 44%
AA+ to AA- 45%
A+ and below 11%
Conservative investment policy for liquidity
Amortized cost portfolio USD 5.5 billion
Longer term assets to stabilize net interest margin
Fair value portfolio USD 6.1 billion
Liquid assets to meet short & medium-term operational
needs
Treasury investments of USD 11.6 billion*
Sovereign Supranational and Agencies,
69%
Asset-backed securities, 2%
Banks, 12%
Corporate , 3%
Time Deposits, 14%
Still able to outperform benchmarks…
… despite low interest rate environment
34 * December 2015
4%
AfDB
(Aaa/AAA) End-2014
AsDB
(Aaa/AAA) End-2014
IBRD
(AAA/Aaa) June-2014
Shar
eh
old
ers
’ Su
pp
ort
Coverage of net debt by callable capital AAA AAA A+
Average rating of key shareholders* BBB+ AA- AA
Pro
fita
bili
ty
Net income/average equity (%) 0.53 2.30 -2.49
Cap
ital
isat
ion
Equity/assets (%) 27.51 20.46 18.39
Paid-in/subscribed capital (%) 5.40 5.02 6.02
Debt/equity (%) 243.53 375.28 421.74
Ris
ks
Average rating of loans & guarantees BB BBB- BBB-
Impaired loans/gross loans (%) 3.1 0.04 0.3
Share of non-sovereign exposure (%) 27.5 8.9 0.0
Equity stakes/(loans + equity stakes) (%) 4.5 1.5 0.0
Five largest exposures/total loans (%) 59.1 77.2 43.7
Share of 'AAA'-'AA' treasury assets (%) 93.9 70.2 75.6
Financial ratios compare favorably to peers
35 Source: Fitch, August 2015
* The AfDB rating only includes rated countries located in Africa
Financial ratios compare favorably to peers
36
August 2015
37
Capital Market Activities
The African Development Bank
3
Growing borrowing program in line with our planned operations on the continent
Growth in 2016 borrowing reflecting anticipated growing operations
38
0
1,000
2,000
3,000
4,000
5,000
6,000
7,000
8,000
9,000
2012 2013 2014 2015 2016
3,844
5,668
4,663
3,912
8,580* In USD million
Develop access to public and private markets in
various currencies
Issuance of regular and liquid benchmark in global and domestic
markets
Access medium to long-term funding
Deepen and broaden the Bank’s investor base
Provide local currency funding
AfDB’s funding strategy
Eligibility for repo with central banks AfDB bonds are repo eligible in Australia, New Zealand, EU, UK,
Nigeria, Uganda, Zambia, Kenya, Botswana & US
*Approved amount
Comprehensive market access
Global benchmarks Public domestic
benchmarks Plain vanilla private
placements Structured private
placements African currency linked
notes African local currency
benchmarks Uridashis
Loans ECP
Australia Botswana
Brazil Canada
Chile Europe Ghana
Indonesia Japan Kenya
Mexico New Zealand
Nigeria
Russia Singapore
South Africa Sweden
Switzerland Turkey Uganda
UAE UK
USA Vietnam Zambia
Breadth of access across markets and currencies over the past 10 years
39
USD 51.8%
EUR 40.3%
ZAR 6.1%
JPY 1.8%
Others 0.1%
Composition of outstanding loans by currency (as of 31 December 2015)
40
Global benchmarks seal AfDB’s premier league position
Flagship benchmark funding program of the Bank
USD 1 billion 0.75% due November 2017, UST +
20.95 bps, MS+9bps Bank of America Merrill Lynch, Goldman
Sachs, J.P. Morgan, Societe Generale
November 2015
USD 1 billion 1.375% due February 2020, UST +
17.6 bps, MS flat Daiwa, Deutsche Bank,
Morgan Stanley, TD Securities
February 2015
Global benchmark books more than 200% oversubscribed within 2 hours
Banks 31%
Funds 19%
Central Banks/OIs
* 50%
Distribution by investor type
EMEA Americas Asia
30% 33% 37%
Distribution by region
* Official Institutions
Cementing our footprint in Australasia
Australian dollars, the second currency of funding for the third year running
Building AfDB’s A$ benchmark curve since 2011…
… with A$3.7 billion currently outstanding in the kangaroo
market
NZD 100 million Kauri bond due August 2019
Diversifying the Bank’s funding sources into New Zealand after
a 6-year absence
A$1,000 million due 2022
A$500 million due 2018 A$500 million due 2016
A$325 million due 2025
A$100 million due 2026
A$250 million due 2019
A$650 million due 2024
A$100 million due 2018
A$300 million due 2020
41
Still going strong in Sterling
42
Central Bank / OIs*
30%
Asset Managers 9%
Banks 56%
Institutions/Private Fund 4%
Corporate 1%
Distribution by investor type
Africa Americas Asia Europe UK/Ireland
4% 12%
27%
5%
52%
Distribution by region
GBP 350 million 1.125% due December 2016
GBP 250 million 3-year benchmark launched in January 2014 Priced at UK Treasury 4% Sep 2016 + 35 basis points GBP 100 million increase executed in April 2014 Priced at UK Treasury 4% Sep 2016 + 34 basis points
*Official Institutions
Banks 85%
CB/OI* 4%
Fund Managers
11%
Europe Asia
81%
19%
Distribution by investor type
Distribution by region
GBP 250 million 3-year benchmark launched in January 2016
Priced at UK Treasury 4% Sep 2016 + 39 basis points
GBP 250 million 0.875% due December 2018
Accessing Africa’s foremost bond markets
43
Landmark NGN 12.95 billion 7-year domestic bond in Nigeria
First-ever debt program from a supranational issuer
Issuance in Uganda amounting to UGX 25 billion since 2012
ZAR 650 million 3-year Eurobond in 2014
AfDB and Bloomberg launched the AFMI Bloomberg African Bond Index (ABABI ) – 2015 Transparent and credible benchmark indices to provide investors with a tool with which to measure and track
the performance of Africa’s bond markets Composite index comprised of the Bloomberg South Africa, Egypt, Nigeria and Kenya local currency sovereign
indices
Authorization to issue in the domestic market
Authorization to freely exchange bond
proceeds in any other currency
Withholding tax exemption Waivers
requested for bond issuance in domestic
markets
Confirmation that the bonds will be accorded an asset-risk weighting
of 0% AfDB bonds are 0% risk weighted under Basel II
Eligibility of the bonds for bank liquidity ratio
requirements AfDB bonds are level 1
assets under Basel III
Tax exemption on income and gains to
bondholders
Clean energy Education Education support Food security Gender
USD 200 million infrastructure bond
BRL 271 million food security uridashi bond
Catering to socially responsible investors
Green Infrastructure Powering Africa Social Water
AfDB Green Bond program launched in 2013
To finance eligible climate change mitigation and adaptation
USD 1.2 billion issued under the program since 2013
Dedicated Green Bond website and newsletter
Harmonized impact reporting with other MDBs
44
AfDB Socially Responsible bonds since 2010. Proceeds used on
a best-efforts basis towards lending in the
relevant areas of interest
Solid Environmental, Social, and Governance standing
“A clear impression of an institution that is well aware
of the challenges posed by climate change as well as
other environmental and social concerns that may be
associated with investments projects. In particular we
are pleased with the consciousness shown towards the
external impacts of projects both across space and
time”
CICERO, 1st September 2013
“On a relative benchmarking with other
supranationals and development banks, the bank
continues to demonstrate robust benefits and
programs to attract and retain talent. Additionally, the
bank has a well-defined system in place to manage
credit and reputational risks arising from these
impacts.”
MSCI ESG Research, 5th December 2014
ESG performance scores from specialized rating agencies
An institution with strong ESG fundamentals
AfDB ESG performance rated by the market
45
The trusted partner for Africa’s development
46
“…the best advocate for Africa in achieving the MDGs.” Her Excellency Ellen Johnson Sirleaf, President of Liberia, 2013
“The African Development Bank, as a global institution, is an essential bridge between Africa and the wider world. It keeps the focus on Africa’s unique economic priorities, yet speaks a
language everyone understands. The African Development Bank is a model of how Africa and the developed world can work together for mutual benefit and with mutual respect.”
His Excellency Paul Kagame, President of Rwanda, 2014
Her Excellency Ellen Johnson Sirleaf President of Liberia “AfDB has been Africa’s dependable partner in development
since its establishment in 1964.” His Excellency Jakaya Mrisho Kikwete, President of Tanzania, 2012
His Excellency Jakaya Mrisho Kikwete
President of Tanzania
His Excellency
Alassane Dramane Ouattara President of Côte d’Ivoire
“…a global institution with a solid financial record improving the lives of Africans.”
His Excellency Alassane Dramane Ouattara, President of Côte d’Ivoire, 2015
His Excellency Paul Kagame
President of Rwanda
47
Appendix
The African Development Bank
4
A. Financial Statements
AfDB income statement (UA millions)
48
Year Ended 31 December 2014 2013 2012 2011 2010
Operational Income and Expenses
Income from Loans 342.13 335.01 351.16 314.92 293.36
Income from Investments and related derivatives 132.41 131.24 199.35 168.85 219.22
Income from Other Securities 3.85 3.95 4.83 5.41 6.74
Total income from Loans and Investments 478.39 470.20 555.34 489.18 519.32
Interest and amortized issuance costs (375.96) (302.99) (356.41) (316.82) (303.04)
Net interest on borrowing-related derivatives 221.21 111.85 139.16 112.16 126.27
Unrealized losses on borrowings, related derivatives and others
(29.83) 34.11 (10.17) (3.04) (40.94)
Provision for Impairment on Loan Principal and Charges Receivable
(18.02) (41.14) (29.69) (17.68) (26.76)
Provision for Impairment on Equity Investments 0.75 0.76 (0.05) (0.15) (0.90)
Provision for Impairment on Investments - 9.19 0.29 6.39 18.58
Translation Gains/(Losses) (4.07) 13.33 (2.27) (27.95) 4.87
Other Income 3.39 3.02 15.29 4.46 (1.72)
Net Operational Income 282.20 302.98 309.79 246.55 295.66
Administrative Expenses (123.16) (110.97) (107.55) (79.50) (75.00)
Depreciation – Property, Equipment and Intangible Assets (7.61) (6.70) (4.59) (4.47) (4.59)
Sundry (Expenses)/Income 0.26 (4.98) (1.94) 1.93 (2.41)
Total Other Expenses (130.50) (122.65) (114.07) (82.04) (82.00)
Income before Distributions Approved by the Board of Governors 151.69 180.33 195.71 164.51 213.66
Distributions of Income Approved by the Board of Governors (120.00) (107.50) (110.00) (113.00) (146.37)
Net Income for the Year 31.69 72.83 85.71 51.51 67.29
1 UA = 1 SDR = 1.54003 USD (2010) = 1.53527 USD (2011) = 1.53692 USD (2012) = 1.54000 (2013) = 1.44881 (2014)
AfDB balance sheet highlights (UA millions)
49
Year Ended 31 December 2014 2013 2012 2011 2010
Assets
Due from Banks 406.71 954.13 881.45 344.16 395.72
Demand Obligations 3.80 3.80 3.80 3.80 3.80
Treasury Investments 7,341.62 6,058.45 6,487.51 7,590.47 7,433.53
Derivative Assets 1,143.68 985.96 1,558.33 1,696.68 1,421.48
Non-Negotiable Instruments on Account of Capital 0.74 1.20 1.97 3.04 4.62
Accounts Receivable 640.16 843.86 762.67 914.85 1,341.66
Outstanding Loans 12,496.52 11,440.70 10,885.80 9,373.52 8,293.01
Hedged Loans – Fair Value Adjustment 112.70 32.49 86.85 49.87 –
Equity Participations 596.82 525.01 438.56 309.76 272.24
Other Securities 94.11 82.90 76.54 79.99 79.75
Other Assets 79.46 41.22 31.06 13.34 12.69
Total Assets 22,950.83 20,996.72 21,214.55 20,261.45 19,144.29
Liabilities, Capital and Reserves
Accounts Payable 1,211.81 1,246.11 2,083.07 1,974.68 2,015.04
Derivative Liabilities 853.74 971.85 512.60 502.29 328.30
Borrowings 14,375.95 12,947.44 13,278.80 12,902.96 11,980.56
Capital Subscriptions Paid 3,438.23 3,147.08 2,839.48 2,505.97 2,355.68
Reserves 2,815.32 2,856.88 2,667.44 2,536.18 2,627.28
Total Liabilities, Capital and Reserves 22,950.83 20,996.72 21,214.55 20,261.45 19,144.29
1 UA = 1 SDR = 1.54003 USD (2010) = 1.53527 USD (2011) = 1.53692 USD (2012) = 1.54000 (2013) = 1.44881 (2014)
50
Appendix
The African Development Bank
4
C. Green Bonds
AfDB’s Green Bond framework
Portfolio selection
• AfDB eligibility criteria for Green Bond linked to the climate finance tracking methodology
Monitoring and reporting
• Framework for selecting green projects
• Impact assessment of projects: metrics : positive outcome of the investment
• Disclosure on disbursements & deployment of proceeds
• Update on projects
External assurance
• Certification process: Second opinion from CICERO
Management of proceeds
• Pipeline of projects
• Disbursement of eligible projects
• Semi-annual allocation of proceeds to green projects to be approved by ALCO
Investor Marketing
• Updates through roadshows and targeted communications
• Respond to Investor queries
• ESG rating
51
Outstanding Green Bond project portfolio breakdown
By country
52
By sector
Multinational 2%
Morocco 49%
South Africa 16%
Tunisia 10%
Nigeria 9%
Kenya 6%
Other countries 3%
Egypt 3%
Zambia 2%
Biogas 1%
Water 32%
Solar 25%
Wind/Hydro* 20%
Wind 9%
Energy Efficiency 9%
Transport 2%
Hydro 2%
* ONEE Integrated wind/hydro project
Examples of eligible mitigation and adaptation projects
• Renewable energy generation
• Energy efficiency
• Vehicle energy efficiency fleet retrofit or urban transport modal change
• Biosphere conversation projects
• Solid waste management
• Fugitive emissions and carbon capture
• Urban development
• Water supply and access
• Low carbon transport
AfDB guiding principles for climate change finance tracking
53
Projects reducing vulnerability of human or natural systems to climate change by maintaining or increasing adaptive capacity and resilience
Projects leading to significant GHG emissions reductions over the lifetime of the asset will also be eligible
Only projects whose financing can be qualified in full as promoting either low-carbon or climate resilient development will be considered for the Bank’s Green
Bond portfolio
Typology of climate and mitigation for tracking purposes
54
Wind Energy
• Improve design of turbines to withstand higher wind speeds as a result of extreme weather events
• Construct power generation capacity from solar thermal, solar PV and wind
Solar Energy
• Improve design of solar panels to withstand higher intensity storms resulting from CC&CV
• Strengthen regulatory and institutional framework to support expansion of wind and solar power generation
Activities with Adaptation Co-benefits
Activities with Mitigation Co-benefits
• Support wind and solar energy technology manufacturers
Typology of climate and mitigation for tracking purposes
55
Other Sources of Energy
• Secure access to water for crops used as bioenergy source (i.e. biofuel)
Activities with Adaptation Co-benefits
Activities with Mitigation Co-benefits
• Geothermal power
• Solid biomass power (pellets, sawmill residues, bagasse, forest plantations, etc.) only if biomass resources are residues, or produced in a sustainable manner
• Biogas power (only if the biomass resources used for biogas production are residues, or produced in a sustainable manner)
• Ocean power (wave, tidal, ocean currents, salt gradient)
Construct power generation capacity from other renewable sources (biomass, geothermal
and other non-hydro)
• Rural electricity with off-grid renewable energy (in the case of hybrid systems, only renewable energy components are counted)
• Urban off-grid applications (PV public lighting)
Support other renewable energy
Project evaluation & selection
56
Bank’s Methodology for Tracking Climate Adaptation and
Mitigation Finance
Bank’s Environmental
Strategy permeates design
of all projects
• Energy, Environment and Climate Change Department with operational departments evaluate and select climate change projects according to the Bank’s methodology for tracking climate finance
• Energy, Environment and Climate Change Department with Treasury Department evaluate and select projects for the Green Bond portfolio according to the Bank’s Green Bond framework
ALL PROJECTS
APPLICATION OF GREEN
BOND FRAMEWORK
SCREENING AND SELECTION OF
PROJECTS ACCORDING TO THE
CLIMATE FINANCE TRACKING
METHODOLOGY
GREEN BOND
ELIGIBLE PROJECTS
BOND
PROCEEDS
SEMI-ANNUAL
ALLOCATION
USD
EUR ZAR
Joint MDB Report on
Adaptation/Mitigation
Finance
What can be financed with AfDB Green Bonds?
Greenfield Renewable Energy Generation (e.g. solar, wind, geothermal, and ocean power)
Biosphere conservation projects (reduce emissions from deforestation and degradation of ecosystems)
Solid Waste Management (e.g. incineration of waste, landfill gas capture and landfill gas combustion)
Demand-side Brownfield and Greenfield Energy Efficiency (e.g. energy efficiency improvements in lighting and equipment; retrofit of transmission lines, substations or distribution systems to reduce technical losses)
Vehicle energy efficiency fleet retrofit or urban transport modal change
Water Supply and Access (e.g. water-saving measures such as introduction of less water intensive crops or preservation of soil moisture and fertility)
Urban Development (e.g. rehabilitation and upgrade of urban water drainage systems in areas vulnerable to frequency and/or severity of flash floods and storm surges brought by climate change)
Industrial Processes (reduce GHG emissions from industrial processes improvements and cleaner production)
Fugitive emissions and carbon capture (e.g. carbon capture and storage, reduction of gas flaring or methane fugitive emissions in the oil and gas industry, coal mine methane capture)
57
Selected eligible Green Bond projects Morocco Africa’s largest concentrated solar power plant Ouarzazate Solar Complex – Phase I (NOORo I) AfDB financing USD 204 million • AfDB financing EUR 100 million and EUR 75 million via CTF • The plant Noor I is now connected to the country’s grid and provides 160 MW of
the projected NOOR complex 510 MW capacity • Annual GHG reductions of 0.27 MT CO2e per year • Curb CO2 emissions by 6.8 million tons over the lifetime of the asset • More than 500 jobs created during the construction • Increase in the share of renewable energies in Morocco’s energy supply by 2020
58
Morocco Ouarzazate Solar Complex – Phase II (NOORo II and NOORo III)
AfDB financing EUR 100 million and 90 million via CTF
• 350 MW of CSP capacity
• Annual GHG reductions of 0.52 MT CO2e per year • Curb CO2 emissions by 13 million tons over the lifetime of the asset
• Creation of 1,600 jobs during construction and 200 permanent jobs thereafter • Increase in the share of renewable energies in Morocco’s energy supply by 2020
• NOORo II and NOORo III plants will be operational by late 2018
Selected eligible Green Bond projects
59
South Africa Xina Solar One Concentrated Solar Power plant AfDB Financing USD 100 million • 100 MW of capacity • Annual GHG reductions of 0.40 MT CO2e • Creation of 1,415 jobs • 85% of electricity in South Africa is coal generated, and accounts
for over 40 percent of Africa’s CO2 emissions. Project aims to increase renewable energy production and reduce use of coal-power plants
Kenya Lake Turkana Wind Farm
Africa’s largest wind power project
AfDB financing EUR 115 million
• 300 MW of wind capacity • Annual GHG reductions of 0.74 MT CO2e per year
• Curb CO2 emissions by 16 million tons over the lifetime of the asset • Creation of 850 jobs Computer generated mockup of the Lake Turkana project
Selected eligible Green Bond projects
60
Morocco ONEE Integrated Wind/Hydro Programme AfDB financing USD 450 million • Three wind farms of 100-300MW capacity and two hydro
facilities to supply base-load power • Annual GHG reductions of 3.3 MT CO2e per year • 4000 jobs during construction and 350 permanent jobs • 86,000 new rural household connections
Zambia
Itezhi-Tezhi Hydro Project
AfDB financing USD 35 million
• Installed capacity of 120 MW • Annual GHG reductions of 0.56 MT CO2e per year
• Creation of 820 jobs • Mitigating the severe energy generation deficit of the Zambian
electricity network while reducing dependency on coal powered plants
Selected eligible Green Bond projects
South Africa
Eskom Renewable Energy Projects – Sere Wind Facility and Upington CTSP
AfDB financing USD 265 million
• One wind farm of 100MW capacity and a solar plant of 100MW to supply base-load power
• Annual GHG reductions of 0.81 MT CO2e
• 3071 jobs created
• Reduced dependency on coal-fired power
61
Cape Verde Cabeolica Wind Farm Project
AfDB financing USD 20 million
• 25.5 MW capacity
• Diversify its energy matrix which is currently dominated by diesel thermal power generation
• Annual GHG reductions of 0.07 MT CO2e
Selected eligible Green Bond projects
62
Egypt Gabal El-Asfar Wastewater Treatment Plant, Stage II Africa’s largest wastewater treatment plant AfDB financing USD 74 million • 500,000 m3/d primary and secondary wastewater
treatment capacity • Improved water and sanitation for approximately 10
million people with attendant reduction in pollution and water borne diseases
• Annual GHG reductions of 0.2 MT CO2e Tunisia
The Electricity Distribution Networks Rehabilitation and Restructuring Project
AfDB financing USD 65 million
• Energy efficiency project aimed at promoting more efficient and sustainable energy use in view of
increased economic development • Construction and rehabilitation of power lines and
stations to maximize efficiencies • Annual GHG reduction of 110 tonnes of CO2e
Selected eligible Green Bond projects
63
Morocco Power Transmission and Distribution Development Project
AfDB financing USD 154 million • Designed to minimize energy transmission losses from
production sites to the distribution grid • Reduction of electricity losses from 4.7% to 3.5% will help
save 376 GWh annually • Annual GHG emissions reduction of 0.18 MT CO2e
Morocco National Irrigation Water Saving Programme
Support Project (PAPNEEI)
AfDB financing USD 74 million • Protect water resources for rural populations
through sustainable management of these resources • Direct benefit for 5,853 farms and 30,000 persons
• 69 million m3 of water saved
Addressing the potential negative effects of large hydro
64
• Hydro projects that need to observe the strictest environmental and social impact standards require a full Environmental and Social Impact Analysis (ESIA) when any of the following criteria are met:
Dam projects involving the establishment of a reservoir of 1,000 ha or more affecting land used by local populations;
Power transmission lines of more than 110 kV, crossing highly populated, forested or cultivated areas;
Power generation plants of more than 30 MW.
• Net proceeds of AfDB Green Bonds might finance large hydro as long as and only if net emission reductions can be demonstrated (i.e. emission reductions from replacing fossil fuel generation minus emissions generated from creating the reservoir e.g. cutting trees)
• The Green Bonds project portfolio currently contains two hydro projects: ONEE Integrated Wind/Hydro in Morocco and Itezhi-Tezhi in Zambia
Case study: Itezhi-Tezhi hydro project
• Planned electricity generation of clean hydro power will save an estimated 360,000 tonnes of CO2 emissions per year
• As a category 1 project, a full ESIA was conducted for the Itezhi-Tezhi project which involved public consultations (publicly available online*). A positive environmental externality of USD 39 million minimum is expected to be created by the overall project
• For the 404 persons affected by the project, a full Resettlement Action Plan was prepared and implemented in accordance with the Bank’s policy on involuntary resettlement including supporting the vulnerable to relocate. A budgetary allocation was also provided by the Zambia Energy Utility Company (ZESCO) to ensure fair and timely compensation of project affected persons
* http://www.afdb.org/fileadmin/uploads/afdb/Documents/Environmental-and-Social-Assessments/0305_Final%20Document%20_ITT_ESIA_RAP%20Summary.pdf
• An amount equal to the net proceeds of the bonds will be allocated within the treasury’s liquidity portfolio, to a sub-portfolio, that will be linked to the AfDB’s lending operations in the fields of climate change adaptation and mitigation (“eligible projects”)
• So long as the bonds are outstanding, the balance of this sub-portfolio will be reduced, at the end of each semester, under the Bank’s debt allocation framework, by amounts matching the disbursements made during the semester in respect of eligible projects
Allocation of proceeds
65
Green unpacked: commitment to transparency
http://www.afdb.org/en/topics-and-sectors/initiatives-partnerships/green-bond-program/
66
• Key information about the AfDB’s Green Bond program and framework, including project selection criteria
• Key documents related to AfDB’s Green Bond program including the second opinion from CICERO as well as links to other relevant Bank documents such as the Long-Term Strategy and the Environment Policy
• Annual newsletter reporting on the projects which are part of the Green Bond portfolio
• Impact reporting measurements
Installed capacity
Annual energy savings
Lifetime GHG emission reductions
Annual GHG emission reductions
Job creation
To enable investors to follow the implementation of AfDB’s Green Bond program, a dedicated website has been established which includes, among other things:
67
Green Bond impact reporting (1)
Year Name of project Country Type Total project
cost (USD)
ADB amount approved
(USD)
Installed capacity
(MW)
Annual energy
output/savings (GWh)
Lifetime GHG emissions reduced or avoided (in
tonnes CO2e)
Annual GHG emissions
reduced or avoided (in
tonnes CO2e)
Volume of water saved/treated (in million m3)
Job creation (no. of people)
2014 Ouarzazate Solar Complex Project - Phase II (NOORo II and NOORo III power plants)
Morocco Solar 2,455,588,069 121,410,016 350 1,100 13,050,000 522,000 1,800
2014 Xina Solar One Project South Africa Solar 908,000,000 100,000,000 100 383 400,000 1,415
2014 Urban Water Sector Reform and Post Harcourt Water Supply & Sanitation Project
Nigeria Water 346,060,000 204,781,073
2014 Transforming Rural Livelihoods in Western Zambia - (NRWSSP) Phase II
Zambia Water 35,713,167 15,500,000 12,501
2014 Ezulwini Sustainable Water Supply and Sanitation Service Delivery Project
Swaziland Water 27,007,000 23,013,000
2013 Lake Turkana Wind Power Project Kenya Wind 756,125,998 139,621,518 300 1,249 16,000,000 736,615 750
2012 Ouarzazate Solar Power Station Project - Phase I (NOORo 1 power plant)
Morocco Solar 1,489,000,000 203,968,826 160 497 6,784,150 271,366 2,650
2012 ONEE Integrated Wind/Hydro and Rural Electrification Programme
Morocco Wind/ Hydro
2,389,000,000 435,861,957 1100 2,496 65,000,000 3,250,000 4,350
2012 Ithezi-Tezhi Power Project Zambia Hydro 239,000,000 35,000,000 120 611 14,400,000 560,654 820
2011 Project to Improve the Quality of Treated Water
Tunisia Water 48,245,373 39,397,550 100
2011 Rural Drinking Water Supply (RDWS) Programme
Tunisia Water 131,566,436 115,120,977 20
68
Green Bond impact reporting (2)
Year Name of project Country Type Total project
cost (USD) ADB amount
approved (USD)
Installed capacity
(MW)
Annual energy
output/savings (GWh)
Lifetime GHG emissions reduced or avoided (in
tonnes CO2e)
Annual GHG emissions
reduced or avoided (in
tonnes CO2e)
Volume of water saved/treated (in million m3)
Job creation (no. of people)
2011 Rift Valley Railways Project Multinational Transport 372,000,000 40,000,000
2011 Eskom Renewable Energy Project - Sere Wind Facility
South Africa Wind 347,714,400 45,000,000 100 219 4,760,000 238,000 1,521
2011 Eskom Renewable Energy Project - Upington CSTP
South Africa Solar 909,852,680 220,000,000 100 531 11,400,000 570,000 1,550
2011 Kivuwatt Project Rwanda Energy
Efficiency 127,580,000 25,000,000 25
2010 Marrakech Region Water Supply Project
Morocco Water 319,916,793 182,692,019
2010 Cabeólica Wind Power Project Cape Verde Wind 84,704,271 18,211,502 25.5 98 2,100,000 67,444 90
2009 Gabal El-Asfar Wastewater Treatment Plant - Stage II, Phase II Project
Egypt Water 308,074,958 64,747,961 6.5 186,528 550
2009 The Electricity Distribution Networks Rehabilitation and Restructuring Project
Tunisia Energy
Efficiency 75,932,132 57,754,744 0.22 430 110
2009 Power Transmission and Distribution Development Project
Morocco Energy
Efficiency 176,812,772 133,332,479 376 30,000,000 183,000
2009 The National Irrigation Water Saving Programme Support Project (PAPNEEI)
Morocco Water 82,968,193 65,063,627 69
2008 Buseruka Hydropower Project Uganda Hydro 13,890,000 9,000,000 9 232
Total: 11,644,752,243 2,294,477,251 2,396 7,560 163,494,580 6,985,717 169 28,249
Third party assurance
“A clear impression of an institution that is well aware of the challenges posed by climate change as well as
other environmental and social concerns that may be associated with investments projects. In particular we are
pleased with the consciousness shown towards the external impacts of projects both across space and time”
CICERO, 1st September 2013
69
The company's environmental social lending and investment banking guidelines cover client-related
environmental and social risks and impact management aspects, including risk and impact assessments,
effective stakeholder engagement and grievance mechanisms.
Oekom Corporate Rating, 12th December 2014
“On a relative benchmarking with other supranationals and development banks, the bank continues to
demonstrate robust benefits and programs to attract and retain talent. Additionally, the bank has a well-defined
system in place to manage credit and reputational risks arising from these impacts.”
MSCI ESG Research, 5th December 2014
“The AfDB, in accordance with its mandate as set out in Article 1 of the Bank Agreement and Article 2 of the Fund
Agreement, and the provisions in Article 38 of the Bank Agreement and Article 21 of the Fund Agreement, views
economic and social rights as an integral part of human rights, and accordingly affirms that it respects the
principles and values of human rights as set out in the UN Charter and the African Charter of Human and Peoples’
Rights. These were among the principles that guided the development of the Integrated Safeguards System.”
Vigeo, July 2014
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