Authorizations and exposure

• Sovereign and Sovereign Guaranteed Loans from the ADB Window - Fully Flexible Loan (FFL):
• Sovereign and sovereign guaranteed borrowers
• Tenor: Up to 25-year maturity and 8-year grace period
• Premium: Ascending maturity premium
• Has embedded risk management products
• Eligibility: Category B and C countries and public sector entities with sovereign guarantee
• Amount: Up to 50% (could be up to 100% in some cases)
• Fees: Front-end fee, commitment fee
• Loans can be made in several currencies
• Sovereign and Sovereign Guaranteed Loans from the ADF (concessional lending) Window:
• Sovereign borrowers
• Up to 61% concessional (depends on country classification)
• Tenor: Up to 40 years with up to 10-year grace period (depends on country classification)
• Other fees: Service charge, commitment fee
• Loans are made in UA but disbursed and repaid in EUR, USD, GBP, JPY, RMB
• Free FX spot service offered to borrowers who borrow and repay in other courrencies
• Non-Sovereign Guaranteed Loans (NSGLs) – Fixed Spread Loan:
• May be used for corporate or project financing
• Tenor: Up to 15-year maturity and 5-year grace period
• Amount: Up to 33% of the project cost or 50% of shareholder's equity (in case of loans to banks)
• Fees: Front-end fee, appraisal fee, supervision fee, commitment fee, other fees
• Loans can be made in several currencies
• Lines of credit:
• Fixed-spread loans to financial institutions for on-lending to customers based on pipeline of transactions
• Generally used for SMEs, women- or youth led companies
• Agency lines:
• Fixed-spread loans, AfDB takes the risk of end beneficiaries
• Local currency loans:
• AfDB offers synthetic local currency long-term loans to public- and private-sector borrowers
• Additional margin charged to account for cost of raising funds in local currency
• Loan syndication;
• Loans to public sector companies without a sovereign guarantee, private sector companies
• A/B-loan structure: AfDB acts as lender of record. A-loan is provided by AfDB. B-loan by a financial institution
• B-loan participants benefit from AfDB's preferred creditor status
• A-loan amount is at least 25% of the total loan
• Terms similar to non-sovereign loans
• Other structures are available as well

• Interest rate swaps
• Cross-currency swaps
• Commodity price swaps

• Equity and equity-debt packages for qualifying non-sovereign guaranteed companies and investment vehicles
• Investments may be made directly or indirectly
• Investment amount is the lower of:
• 25% of total share capital
• Percentage of share capital representing a non-controlling interest
• Financial returns should be clearly discernible
• Well-defined exit strategy is required

• Partial risk guarantees
• Covers private projects in relation to government undertakings
• Eligible structures: With a deemed loan for protection against termination risk or standby LC for protection against liquidity shortfalls
• Partial credit guarantees
• Covers default on scheduled payments on an obligation against all risks of private sector companies, governments, and government entities
• May be structured on a pro-rata, first loss, or second loss protection basis
• Fees: Front-end fee, guarantee fee, standby fee, late payment and arrears fee
• Tenor: Up to 40 years depending on product and lending window

• Risk participation agreement:
• AfDB provides either co-financing to respondent banks on a portfolio basis, or assumes a portion of the payment risk on a portfolio basis
• Maximum tenor: 3.5 years with banks, 2 years for underlying transactions
• Currencies, USD, EUR, ZAR, JPY
• Cover: Up to 50% of transactions (in special cases, up to 75%)
• Trade finance line of credit:
• Short-term lines of credit offered to banks to facilitate trade finance operations
• Trade finance transactions may include pre-shipment, post-shipment financing, capital expenditure, international trade logistics, LC discounting, factoring, forfaiting, importing and exporting trade finance
• Currencies, USD, EUR, ZAR, JPY
• Tenor: Up to 3.5 years
• Soft commodity finance facility:
• Provided to commodity traders
• Supports import and export of agricultural commodity
• Tenor: Up to 2 years
• Transaction guarantee:
• 100% non-payment risk cover to confirming banks of eligible African banks
• Tenor: Up to 3 years
• Currencies, USD, EUR, ZAR, JPY

• Technical assistance grants
• Co-financing

• Country classification categories:
• Category A: Countries not deemed creditworthy for non-concessional financing
• Category B: Countries with per capita income below ADF operation cut-off for more than 2 consecutive years and deemed creditworthy for non-concessional financing
• Category C: Countries with per capita income above ADF operation cut-off for more than 2 consecutive years and deemed creditworthy for non-concessional financing

• To be supported, transactions must meet three criteria:
• Demonstrate alignment with AfDB the host country economic and social objectives
• Private sector borrowers to be creditworthy

• Refinancing is not permitted

• Strict ESG standards

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