Investor Presentation - African Development Bank...Investor Presentation The African Development Bank Group February 2016 Table of contents • Overview of the Bank Group 3 • Financial

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


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






41

Still going strong in Sterling

42

Central Bank / OIs*

30%

Asset Managers 9%

Banks 56%

Institutions/Private Fund 4%

Corporate 1%


Africa Americas Asia Europe UK/Ireland

4% 12%

27%

5%

52%


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%



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


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


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


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


South Africa

Eskom Renewable Energy Projects – Sere Wind Facility and Upington CTSP


• 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


• 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

https://www.climateinvestmentfunds.org/cif/sites/climateinvestmentfunds.org/files/images/eskom1.jpg


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


• 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


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