AfDB to float $22bn infrastructure bonds

The African Development Bank (AfDB) has concluded plans to float Africa's first infrastructure bonds to member nations to raise up to $22 billion for investments in projects such as ports and airports.Speaking at an event to celebrate Kenya Bankers Association's golden anniversary, AfDB President, Donald Kaberuka, said: 'The idea is to get a 5 per cent commitment on the African central banks' hard currency reserves.Time has come to work with a triple A-rated African institution, AfDB, to invest on their behalf."The funds raised would surpass, by $3 billion, the $19 billion that both the Tunis-based AfDB and the World Bank commit to sub-Saharan Africa every year, he said"The time has come for we Africans to tap into the surpluses of emerging countries, that is where the money is. But charity begins at home. So, tap into our own resources," Kaberuka said.Funds would be invested on viable infrastructure, offering member states good returns on their investments, Kaberuka said, adding that the proposal would be put to members in Tokyo during the Internationa monetary Fund (IMF) meeting in October.The continent of 1 billion people and 54 countries has posted strong economic growth rates in recent years, thanks to a commodity super cycle and growing consumer power.But it needs to mobilise huge amounts of money to fund construction of roads, rails and energy generation projects.African central banks have generally invested their foreign exchange reserves in northern hemisphere markets, where they earned nothing or very little returns, Kaberuka told newsmen.
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