BOAD mobilizes nearly XOF90 billion to support the private sector

Dakar, 26 September 2015. The Board of Directors of the West African Development Bank (BOAD) held its 98th ordinary session at the Headquarters of the Central Bank of West and Central African States (BCEAO) in Dakar (Senegal) under the chairmanship of Mr. Christian Adovelande, Chairman of the Board of Directors and President of BOAD.

The Board, after having approved the minutes of its 97th session held on 26 June 2015 in Bissau (Guinea Bissau), considered and approved the guidelines for the updating of the 2015-2019 financial outlook and the preparation of the Bank’s 2016-2018 programme budget; and a proposal on the revision of the regulations regarding the preparation of the accounts of the Development and Cohesion Fund; as well as BOAD’s interim financial statements as at 30 June 2015.

As to operations, the Board also approved the following:

  • Loan proposal of XOF10 billion for the partial financing of the phase 1 of the Lake Bam restoration, protection and development project in Burkina Faso;
  • Supplementary equity participation of XOF3 billion by BOAD in the share capital of Air Cote d’Ivoire;
  • Short-term loan of XOF27 billion to the Government of Benin for the partial financing of the inherent needs of the 2015-2016 cotton season.

These new operations brought to XOF3,356.7 billion the total amount of BOAD’s medium to long-term loans, outside the Energy Development Fund (FDE), covering 736 projects. The cumulative amount of short-term loans stands at XOF202.5 billion.

The Board also approved three proposals for the setting up of a credit facility involving a total of XOF89.3 billion to BOAD, to support the private sector. BOAD has also obtained a facility of XOF65.6 billion from the African Development Bank to supplement resources mobilized from the regional capital market to support the Bank’s activities in promoting and financing the private sector.

The Arab Bank for Economic Development in Africa has granted BOAD an amount of XOF8.7 billion, which will be allocated to small and medium scale enterprises in the WAEMU region, through the granting of refinancing facilities to national financial institutions. BNP Paribas, on its part, granted a XOF15 billion facility to BOAD to refinance a loan granted to Albatros Energy Mali as partial financing of a 90 MW thermal power plant at Kayes.

The Board also approved the proposal to set up a XOF32.8 billion cash investment operation at BOAD with funds from the Islamic Corporation for Private Sector Development (ICD).

The Board finally approved two proposals regarding the restructuring of the terms and conditions of a XOF25.740 billion loan extended as partial financing for the construction of a coal-fired thermal plant by the Compagnie d’Electricité du Sénégal (CES) SA at Sendou in Senegal, as well as the policy for the cancellation of facilities granted by BOAD (loans, equity participations and collaterals).

Members of the Board also expressed a positive opinion on two items, including:

  • The statement of recovery of BOAD loans as at 31 August 2015;
  • Status of road maintenance in the WAEMU member countries: overview and prospects.

The Board reviewed the following items:

  • Allocation of ordinary annual endowments for the 2014 financial year;
  • Status of resource mobilization by BOAD as at 31 July 2015;
  • Minutes of the ordinary session of the WAMU Council of Ministers held on 2 July 2015 in Bissau.

Before closing the session, the Chairman, Mr Christian Adovelande, on behalf of the Board of Directors, thanked the Senegalese authorities and the Governor of BCEAO, for the warm and brotherly reception given members of the Board, as well as for the logistic and organizational support that ensured a smooth holding of the session.