The African Development Bank and the Asian Development Bank have agreed to a $1 billion swap

The African Development Bank's Board of Directors has approved a $1 billion large exposure exchange with the Asian Development Bank. This admission was published in a statement on the bank's website.The main purpose of the deal, according to the bank, is to free up additional sovereign loan headroom while strengthening the African Development Bank's capital adequacy requirements. The African Development Bank has previously inked two exposure exchange agreements, the first with the Inter-American Development Bank and the second with the World Bank Group's International Bank for Reconstruction and Development. The statement released reads in part, “This new exposure exchange agreement is the second transaction that the African Development Bank has executed following the success of the first agreement finalized in 2015 with the Inter-American Development Bank and the World Bank Group’s International Bank for Reconstruction and Development.”