BNP Paribas: Geographical Distribution of Net Banking Product

The African Development Bank is reportedly planning a hybrid bond issue to raise up to $1 billion. BNP Paribas is France's largest banking group, with a net banking product breakdown by activity including retail banking, finance and investment banking, institutional and private management, and insurance. At the end of 2024, BNP Paribas managed EUR 1,034.8 billion in current deposits and EUR 900.1 billion in current loans, with a geographical distribution of 81.3% in Europe, Middle East, and Africa, 10% in America, and 8.7% in Asia/Pacific.

The African Development Bank (AfDB) is reportedly planning a hybrid bond issue to raise up to $1 billion, according to recent developments. This move comes as the multilateral lender seeks to access more private capital and optimize its balance sheet. The bond is expected to be structured by Goldman Sachs Group Inc. and BNP Paribas SA, the latter of which is France's largest banking group.

The hybrid bond, which carries a fixed rate coupon and is callable after five or ten years, is set to be issued as soon as September, according to Keith Werner, manager of capital markets and financial operations at AfDB. The bond would be subject to market demand for callability and may carry a sustainable label, depending on the bank's project pipeline. The coupon on the bond would be canceled if the bank's leverage were to roughly double from its current level, though this is considered remote.

Multilateral lenders like the AfDB are increasingly turning to private markets for capital to address the growing needs of developing nations. This trend is driven by the need to cope with the fallout from climate change, military conflicts, and hard-to-manage debt burdens, as well as reduced overseas aid under the Trump administration. Other multilateral development banks, such as the West African Development Bank, the Development Bank of Latin America and the Caribbean, and the Africa Finance Corporation, have also issued hybrid bonds to raise capital.

BNP Paribas, with a strong presence in Europe, the Middle East, and Africa, is well-positioned to assist in this endeavor. At the end of 2024, the bank managed EUR 1,034.8 billion in current deposits and EUR 900.1 billion in current loans, with a significant geographical focus on Europe, the Middle East, and Africa.

References:
[1] https://www.bloomberg.com/news/articles/2025-08-27/goldman-bnp-to-structure-hybrid-bond-for-africa-development
[2] https://www.marketscreener.com/news/majedie-secures-gbp15-million-loan-from-bnp-paribas-ce7c50d9db8efe23