African Development Fund Board Approves $149m Credit Facility to 5 Countries

The African Development Fund Board (ADF) has approved credit risk facility of US$149 million by the Private Sector Credit Enhancement Facility in seven private sector operations targeting five low-income countries.

The Board of Directors of the (ADF), the concessional window of the African Development Bank Group, approved the credit risk participations by the Private Sector Credit Enhancement Facility (PSF) in seven loans cumulatively valued at US$149 million.

Launched in 2015 by the ADF, the PSF provides credit risk participations in private sector operations of the African Development Bank in low-income countries, and is on its way to building a US$1.5 billion portfolio of exposures.

The seven operations include senior loans targeting renewable energy and agro-industry sectors in Uganda, Sudan, and Cameroun among others, as well as lines of credit to lenders in Liberia and Mali.

According to the PSF loan administrator, Cecile Ambert, “These approved operations bring the facility’s total portfolio to over 40% of its US$1.5 billion target size and increase the PSF’s footprint to 29 countries. They deliver on our mandate to contribute to development impact through enabling additional financing of private sector projects in low-income countries”.

The operations were prioritized in light of their superior expected development results and additionality; particularly in terms of increased access to electricity, food security, and job creation.

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