African Development Bank Approves Zar 2.7 Billion Subordinated Financing and $150 Million Trade Finance Facility for Absa Group Limited

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Press Release - The Board of Directors of the African Development Bank has approved a financial package for Absa Group Limited comprising a sustainability-linked loan for an amount of ZAR 1.

The Board of Directors of the African Development Bank has approved a financial package for Absa Group Limited comprising a sustainability-linked loan for an amount of ZAR 1.7 billion; an investment of ZAR 1 billion into Absa's inaugural social bond issuance to be listed on the Johannesburg Stock Exchange; and a trade finance Risk Participation Agreement facility for $150 million.

Absa will deploy the trade financing facility to promote access to trade financing for enterprises and increased trade facilitation for the continent, including for African low-income countries and Transition States in line with the African Development Bank's priorities for improving trade finance access to the continent as well as promoting intra-Africa trade.

Commending Absa on the continued operationalization of its Sustainable Finance Issuance Framework and commitment to sustainability, Ahmed Attout, the African Development Bank's Acting Director for the Financial Sector Development Department, said the collaboration further demonstrated the Bank's commitment to strategically drive innovation and to mobilize and channel funding including through debt capital markets towards key sectors and segments of the economy.

 

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