ADB has just published an analysis on its callable capital, which, we hope, will be useful to stakeholders and credit rating agencies to better understand the value of this instrument.
Unique to MDBs, callable capital is a commitment from each shareholder to make additional capital available to an institution, but only in the event additional capital is required for an institution to avoid defaulting on its borrowings or guarantees.
No major MDB has ever had to use this financial instrument, and there has always been some unclarity about its use.
The report results not only demonstrate ADB’s strong financial footing but also enhance stakeholders’ understanding of ADB’s financial policies, further building trust in ADB’s capacity to drive meaningful change across the region.
Such analysis/initiative is also in line with G20 and shareholders’ calls for MDBs to become better, bolder, and bigger, again demonstrating ADB's continuous commitment to evolve as key multilateral development bank.
Great work and coordination across ADB and with our Board Members.
David Le Brun Nicholas McBride Roberta Casali
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Independent Finance Transformation Expert | Leading C-Suite Trainer | International Speaker | CEO of The Amna Zaidi Company | 20 years of change leadership experience in large blue-chip organisations
6moThank you. One of my favourite topics to speak on.