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AFRICAN DEVELOPMENT BANK SUBORDINATED BONDS RATED 'AA+' BY FITCH

 NEW YORK, Oct. 15 /PRNewswire/ -- The African Development Bank's Yen 40 billion 5.10 percent subordinated bonds are rated `AA+' by Fitch. The bonds have a 20-year maturity with annual interest payable on Oct. 4. With this issue, the bank's total debt rises to an amount equivalent to $8.4 billion, of which $3.5 billion consists of subordinated debt. This is expected to be the bank's last borrowing operation in 1993.
 Fitch expects to change the credit trend to stable from declining following the adoption by the Bank's directors of a range of new financial policies. The policies are broadly in line with other multilateral development banks and should improve borrowing countries' incentives to repay loans in a timely fashion.
 The new financial policies which are expected to be approved by the end of the year enjoy broad support among regional borrowing countries and further solidify the bank's relationships with non-regional member countries. In addition, recent initiatives such as the formation of a conservative private sector lending unit and the proposed creation of a trade bank will strengthen the bank's standing in Africa.
 With total loans outstanding of UA 5.8 billion ($8.0 billion) as of June 30, the African Development Bank operates in the most difficult region of any major development bank. It performs a vital role in providing technical assistance and channeling both concessional resources and loans throughout the continent.
 -0- 10/15/93
 /CONTACT: Ricardo Kleinbaum of Fitch, 212-908-0525/


CO: African Development Bank ST: IN: FIN SU: RTG

MP -- NY063 -- 2833 10/15/93 15:04 EDT
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Publication:PR Newswire
Date:Oct 15, 1993
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