AfDB Markets First Hybrid Out of Global Multilateral Lenders
This article is for subscribers only.
The African Development Bank is planning to issue the first perpetual hybrid notes out of a multilateral development bank, a new tool that could expand funding for developing economies.
The dollar-denominated note will feature a permanent principal writedown clause, which means that the notes could be wiped out if shareholders have to bolster the lender’s capital during times of distress, according to an investor presentation seen by Bloomberg News. Coupons will also be skipped if the agency’s capital is severely depleted.