• BOAD will introduce a stock-market-listed composite index directly correlated with its financial performance.
• The instrument forms part of a broader strategy to strengthen solvency and credit quality as BOAD prepares its 2026–2031 plan.
• BOAD accelerated capital-strengthening operations since 2023, including hybrid debt, new shareholders, and a $500 million sustainable hybrid bond issue.

The West African Development Bank (BOAD) plans to launch a composite index listed on the stock market and directly linked to its financial performance. The institution positions the product as a first in the ecosystem of African multilateral development banks. BOAD aims to attract new investors while maintaining its current governance structure and protecting its shareholder base, which is currently dominated by the eight WAEMU member states and the BCEAO.

BOAD President Serge Ekué told Jeune Afrique that the instrument will allow investors to gain exposure to the bank’s financial trajectory without voting rights or equity entry. “If the Bank performs, we will give part of that performance to an investor in exchange for the equity he provides,” he said. He added that the mechanism is essential for diversifying BOAD’s funding sources. “The framework does not change: the shareholding cannot be diluted,” he insisted.

The instrument forms part of BOAD’s strategy to reinforce solvency and creditworthiness, as financing needs in the WAEMU region continue to rise. BOAD intends to continue using securitisation and credit insurance, while ruling out—for now—any new capital call to shareholders.

As BOAD concludes its Djoliba Plan (2021–2025) in December, the institution prepares to unveil its 2026–2031 strategic plan in January. The new roadmap will raise ambitions significantly and target €1.8 billion in annual commitments in the coming years.

Ekué argued that BOAD must take a larger role in financing regional development. “Development aid, which consists of convincing Western taxpayers to finance the Global South, no longer works. We must take over,” he said. He noted that demand for BOAD financing continues to rise. “We have never been so solicited by our shareholders,” he added.

The bank expects total new commitments since 2021 to reach €6 billion, compared with the €5 billion initially planned under Djoliba.

To meet these needs, BOAD increased efforts to strengthen its capital base. The institution, previously owned 46.6% by WAEMU states, launched several financial operations starting in 2023 to double its share capital.

Regional shareholders increased their subscriptions by 50%, partly financed through a €400 million concessional loan from the Arab Bank for Economic Development in Africa (BADEA). BOAD then opened its capital to new shareholders, including BADEA, before issuing super-subordinated debt, an instrument treated as regulatory capital by rating agencies.

BADEA subscribed $100 million in 2023, followed in 2024 by Italy’s Cassa Depositi e Prestiti, which contributed €100 million. In February 2025, BOAD completed its capital-strengthening cycle with a $500 million sustainable hybrid bond, following a failed 2022 attempt due to adverse market conditions.

Beyond capital operations, Ekué announced that BOAD will also launch a subsidiary dedicated exclusively to private-sector financing, mirroring global institutions such as the World Bank Group’s IFC or France’s Proparco.

BOAD had already approved, during its Board meeting of 18 December 2024, a CFA2.3 billion (€3.5 million) capital injection into BOAD Market Solutions, a new entity based in Côte d’Ivoire. The subsidiary aims to provide “innovative financing alternatives and advanced advisory services” to WAEMU financial actors. It also aims to lay the groundwork for a derivatives and structured-products market in the Union—a segment that remains largely undeveloped.

This article was initially published in French by Fiacre E. Kakpo

Adapted in English by Ange Jason Quenum