BOAD receives $5m from BADEA
The funds will be allocated to SME financing.The Arab Bank for Economic Development in Africa (BADEA) signed an agreement with the West African Development Bank (BOAD) in which it commits to provide a credit line of 8.7 billion CFA francs (€13.5 million).
The funds will be allocated to financing small and medium-sized enterprises through the provision of refinancing lines to domestic financial institutions.
It is part of the 2015-2019 Strategic Plan of the BOAD, which aims to transform the BOAD into "a strong development bank for the economic integration and transformation of West Africa."
This plan allows for up to 1.523 trillion CFA francs of loans to businesses and public projects in sectors such as infrastructure, inclusive growth, food security and sustainable development.
To finance this strategy, the BOAD issued its first bond on international markets in June, which was a success.
Subscriptions reached $1.8 billion (€1.6 billion), and $750 million were finally selected.
"The success of the inaugural issue demonstrates the BOAD's credit quality," said the institution in a statement.