China Chengxin Worldwide Credit score Ranking Co., Ltd (CCXI) has assigned an ‘AAA/Steady’ ranking to African Export-Import Financial institution (Afreximbank) (www.Afreximbank.com), recognising the Financial institution as a number one Multilateral Monetary Establishment (MFI) on the continent. Afreximbank is the primary African Multilateral Monetary Establishment to obtain AAA ranking from CCXI.
In its 2024 Credit score Ranking Report for African Export-Import Financial institution, launched in Beijing on 15 January, CCXI famous that the ranking thought of, as key ranking strengths, Afreximbank’s “very excessive strategic positioning; sound threat administration system; agility and flexibility in enterprise technology, very robust profitability and prudent liquidity administration underpinned by a really excessive protection ratio of present property over short-term money owed”.
“CCXI acknowledges Afreximbank’s strategic relevance to the (African) continent and its potential to execute on its strategic objectives and mandate and to fulfill the wants of member states at completely different levels of improvement, even throughout probably the most difficult occasions,” it added, stating that it believed that Afreximbank’s rankings would stay secure over the subsequent 12 to 18 months.
Reacting to the ranking announcement, Denys Denya, Afreximbank’s Senior Government Vice President, famous that the ranking represented the strongest endorsement the Financial institution had acquired from any credit standing company and that the Financial institution had turn into one of many first African multilateral monetary establishments to attain a high credit standing grade within the Chinese language market, particularly on the energy of its stand-alone credit score profile.
“That is, once more, a testomony to the Financial institution’s systemic relevance to the African continent; its robust supply of its developmental mandate; its prudent threat administration practices and its relentless give attention to capital and liquidity through the years which have culminated in a formidable ranking that gives us with new alternatives to boost competitively priced capital in China and to diversify our funding partnerships,” continued Mr. Denya.
Confirming that the Financial institution would proceed to play a pivotal function in facilitating China-Africa commerce and funding throughout its Member States, he highlighted the sturdy relationships it enjoys which illustrates how integral it has turn into to the achievement of the African Union’s key strategic financial programmes and initiatives, masking the continent and the diaspora, thereby integrating World Africa.
In accordance with Mr. Denya, the ranking places Afreximbank on a stronger footing because it embarks on fundraising actions in a comparatively new capital market as we proceed to leverage optimum monetary assets into Africa.
He identified that the ‘AAA’ credit standing would give utmost assurance to the Financial institution’s new and present funding companions in China to assist the Financial institution’s fundraising actions on aggressive phrases and would place the Financial institution to pursue its developmental mandate and aims.
Since 2019, Afreximbank has grown its property by 28 per cent (5-year CAGR), reaching a return on common fairness of 11 per cent and sustaining its capital adequacy at 25.5 per cent, on common, with the expansion strongly supported by shareholders. It launched its largest common capital enhance in 2021, focusing on to boost US$2.6 billion by 2026, however achieved practically 90 per cent of that concentrate on in three years in a exceptional demonstration of assist from shareholders, regardless of unstable macroeconomic circumstances.
Afreximbank continues to get pleasure from robust market entry and goals to diversify its funding base into new debt capital markets, on the again of its extremely profitable inaugural Samurai bond issuance in 2024. It is going to be exploring alternatives to faucet into the Chinese language Panda bond market in 2025 to assist and facilitate accelerated commerce and funding between China and Africa and to develop its present funding partnerships.
Distributed by APO Group on behalf of Afreximbank.
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About Afreximbank:
African Export-Import Financial institution (Afreximbank) is a Pan-African multilateral monetary establishment mandated to finance and promote intra-and extra-African commerce. For 30 years, the Financial institution has been deploying progressive constructions to ship financing options that assist the transformation of the construction of Africa’s commerce, accelerating industrialization and intra-regional commerce, thereby boosting financial growth in Africa. A stalwart supporter of the African Continental Free Commerce Settlement (AfCFTA), Afreximbank has launched a Pan-African Cost and Settlement System (PAPSS) that was adopted by the African Union (AU) because the cost and settlement platform to underpin the implementation of the AfCFTA. Working with the AfCFTA Secretariat and the AU, the Financial institution is organising a US$10 billion Adjustment Fund to assist nations successfully taking part within the AfCFTA. On the finish of December 2023, Afreximbank’s complete property and contingencies stood at over US$37.3 billion, and its shareholder funds amounted to US$6.1 billion. Afreximbank has funding grade rankings assigned by GCR (worldwide scale) (A), Moody’s (Baa1), Japan Credit score Ranking Company (JCR) (A-) and Fitch (BBB). Afreximbank has developed into a bunch entity comprising the Financial institution, its affect fund subsidiary known as the Fund for Export Improvement Africa (FEDA), and its insurance coverage administration subsidiary, AfrexInsure (collectively, “the Group”). The Financial institution is headquartered in Cairo, Egypt.
For extra data, go to:
www.Afreximbank.com
