The African Development Bank plans toraise about 200 mln dlrs via a U.S. Domestic bond this year,
Milan Kerno, vice president of finance said at a presentation.
    He said the Bank planned to borrow about 700 mln dlrs in
world capital markets in 1987 and roughly the same amount in
1988. Because of the weak condition of the euroyen market,
plans for a bond in that sector, which would comprise part of
the 700 mln dlrs,  have been put on hold, Kerno said.
    "But we should complete our programme (this year), markets
willing," Kerno said, adding the Bank's 1987 borrowing so far
totaled about 400 mln dlrs.
    The Bank's board of directors will meet on October 26 to
discuss plans to begin Bank trading in unspecified securities,
with desks in Abidjan, Kerno said.
    Trading would be conducted along similar lines as existing
World Bank and Asian Development Bank operations, he said.
    The Bank now has roughly 1.2 billion dlrs in available
liquidity to serve as a basis for trading, although not all of
this will be traded at the start. The Bank plans to use the
funds gradually over the next three or four years, he said.
    To facilitate lending increases the Bank tripled paid-in
capital to about 18 billion dlrs from six billion in June.
    German bankers at the presentation criticized the Bank for
its overly conservative lending, adding the Bank would do
better to invest more capital in loans. Total net equity
capital, consisting of subscribed capital and reserves, rose to
1,282 pct of its funded debt in 1986 from 552 pct in 1985, the
Bank's statistics showed.
    Other Bank figures from 1986 showed the Interamerican
Development Bank's net equity totaled 302 pct of funded debt,
and the Asian Development Bank's 295 pct.
 Reuter
