Individuals
Businesses
Company
Intelligence
News
African Capital Markets
EnglishEnglish
share on twittershare on linkedinshare on facebookshare to whatsapp
share on mail
share on instagram

Fitch Revises West African Development Bank's Outlook to Stable

Daba Finance/Fitch Revises West African Development Bank's Outlook to Stable
AFRICAN BUSINESS AND ECONOMYApril 21, 2025 at 10:31 AM UTC

TLDR

  • Fitch Ratings has revised the outlook for the West African Development Bank (BOAD) from negative to stable while maintaining its long-term issuer rating at BBB
  • The revision reflects improved credit performance among member states and ongoing efforts to diversify funding sources
  • BOAD raised $500 million in 2025 via a hybrid bond to boost capital without diluting governance

Fitch Ratings has revised the outlook for the West African Development Bank (BOAD) from negative to stable while maintaining its long-term issuer rating at BBB. The revision reflects improved credit performance among member states and ongoing efforts to diversify funding sources.

The move follows debt repayments by Niger and Guinea-Bissau. Niger cleared arrears in February 2024 after ECOWAS lifted sanctions, while Guinea-Bissau reached a new debt agreement with the bank. As of end-2024, only 2.5% of BOAD’s loan portfolio was in distress, with none involving sovereigns. This led Fitch to downgrade the risk level of BOAD’s loan book from high to moderate.

BOAD raised $500 million in 2025 via a hybrid bond to boost capital without diluting governance. It has also expanded use of securitization and credit insurance to de-risk its loan portfolio. The bank holds more than 30% of its assets in equity and maintains a strong liquidity position.

Daba is Africa's leading investment platform for private and public markets. Download here

Key Takeaways

BOAD’s use of hybrid bonds and credit risk mitigation tools mirrors a broader shift among African development finance institutions adapting to constrained fiscal environments across the region. Institutions like the African Development Bank and Afreximbank have similarly turned to innovative capital market instruments to maintain lending capacity while minimizing sovereign exposure. In 2025, BOAD’s $500 million hybrid bond was seen as a critical tool to raise Tier 1-equivalent capital without requiring member state contributions. The bank’s focus on credit insurance and securitization also aims to protect its portfolio in a volatile geopolitical context. As multilateral lenders continue financing infrastructure and energy projects in West Africa, strong risk management frameworks are becoming central to investor confidence. Fitch’s revised outlook underscores the growing importance of financial innovation in sustaining long-term development finance amid rising global and regional headwinds.

Finance
Fitch Ratings
West African Development Bank
Financial Services
Development Bank
Credit Rating

Think someone else should see this?

share on twittershare on linkedinshare on facebookshare to whatsapp
share on mail
share on instagram
Stay informed with our newsletters read by 25,000+ professionals worldwide
Newsletter companiesNewsletter companiesNewsletter companiesNewsletter companiesNewsletter companiesNewsletter companies

Next Frontier

Stay up to date on major news and events in African markets. Delivered weekly.

Pulse54

UDeep-dives into what’s old and new in Africa’s investment landscape. Delivered twice monthly.

Events

Sign up to stay informed about our regular webinars, product launches, and exhibitions.

+25k investors have already subscribed

To invest in this opportunity and other opportunities across Africa

Download the daba finance app on your mobile through
appstore iconappstore icon
Phone Image

Take action.

Download app

Start investing in Africa’s best opportunities, including stocks, bonds, startups, venture funds, and more.

Partner with us

Unlock exciting business opportunities and growth potential.

Join Daba

Become a part of our vibrant community and enjoy exclusive benefits.

Contact us

Reach out to us for inquiries, support, or collaboration.
For Investor
StrategiesPortfolio ManagementAfrican Capital MarketsNews
Daba Pro Intelligence
For Capital Seekers
For StartupsFor Fund ManagersFor Private CompaniesFor Lenders
For Partners
Commercial BanksBroker DealersAsset ManagersInvestment BanksInvestment Advisors and ConsultantsLenders and Microfinance
Company
About UsMarket UpdatesEventsBlog and PodcastNewsletterCase StudiesAffiliate ProgramInvesting GlossaryOfficial ContactsTrust, Compliance and SecurityFrequently Asked Questions

Terms & ConditionsPrivacy Policy
EnglishEnglish

Owned by Daba Markets Inc. By using this site, you accept our Terms and Conditions and Privacy Policy. © 2024 All rights reserved. 2025 All rights reserved