Africa Finance Company will get AAA from Chinese language ranking agency

Infrastructure options supplier Africa Finance Company has obtained an AAA home credit standing with a secure outlook from China Chengxin Worldwide Credit score Ranking Co. Ltd.

In accordance with an announcement on Monday, the ranking will allow AFC to deepen its engagement in China’s home debt capital markets, faucet a brand new pool of buyers, and additional diversify its funding sources to speed up industrialisation and significant infrastructure growth throughout Africa.

Within the ranking report, CCXI analysts mentioned, “As a number one MDB within the area, AFC has clear strategic positioning and the power to realize its established targets. AFC implements a sound threat administration framework and maintains a prudent threat urge for food. Moreover, its insured mortgage portfolio successfully mitigates the credit score threat of its initiatives.”

The President & Chief Government Officer of AFC, Samaila Zubairu, mentioned, “Receiving an AAA credit standing from CCXI is one other vital endorsement of AFC’s robust credit score profile and a defining second in AFC’s capital-raising technique. This recognition on the highest degree validates our monetary resilience, sturdy governance, and world attain and can allow stronger ties with Asian markets to drive important funding in financial growth, high-value job creation, and Africa’s prosperity.”

Commenting on the ranking, Government Board Member and Head, Monetary Providers of AFC, Banji Fehintola, mentioned, “Amongst numerous funding choices, AFC intends to discover its first panda bond issuance within the close to time period.

This credit standing positions the company to additional have interaction with the Chinese language bond investor base in 2025 and past. This initiative additionally underscores AFC’s dedication to leveraging world monetary markets to help transformative infrastructure initiatives. The AAA ranking from CCXI affirms the Company’s intrinsic monetary energy and disciplined method to threat administration.”

In 2023, AFC posted a 15.3 per cent enhance in income to $329.7m and a 17.3 per cent rise in complete property to $12.3bn. This surpassed AFC’s strategic goal of $10bn in property.

Concerning the energy of AFC’s monetary efficiency, CCXI analysts mentioned, “AFC efficiently achieved its strategic indicators in the course of the 2019-2023 interval. Over the 5 years, the common return on capital rose from roughly seven to 12 per cent, whereas complete property elevated considerably, rising from about $4.5bn on the finish of 2018 to $12.3bn on the finish of 2023.”

AFC has “expanded its investments and affect throughout key sectors reminiscent of vitality, mining, transportation, and trade, which have bolstered its presence within the pan-African area and superior its contributions to local weather motion and vitality transition initiatives,” CCXI’s analysts wrote.

“Notable initiatives” cited embody the Dangote Refinery in Nigeria, ARISE Built-in Industrial Platforms fostering industrialisation throughout Africa, and Infinity Power, Africa’s main renewable vitality platform.

AFC enjoys vital help and collaboration with Asian monetary establishments. In 2024, the Company secured a landmark $1.16bn syndicated mortgage, with pivotal roles performed by the Financial institution of China and Industrial and Business Financial institution of China, London Department. Amongst a number of funding transactions in 2023, AFC additionally obtained a five-year mortgage facility from the Export-Import Financial institution of China to boost commerce finance and help personal sector initiatives.