Afreximbank receives AAA/Stable rating from China Chengxin International Credit Rating Co. – Africa.com
China Chengxin International Credit Rating Co., Ltd. (CCXI) has assigned the African Export-Import Bank (Afreximbank) a “AAA/Stable” rating (www.Afreximbank.com), recognizing the bank as the leading multilateral financial institution (MFI) on the African continent. Afreximbank is the first African multilateral financial institution to receive a AAA rating from China Chengxin International.
China Chengxin International pointed out in the 2024 credit rating report of the African Export-Import Bank released in Beijing on January 15 that the rating believes that the African Export-Import Bank has “very high strategic positioning; sound risk management system; agility in business generation and Adaptability, very strong profitability and prudent liquidity management, underpinned by very high coverage of short-term debt from liquid assets”.
It added: “CCXI recognizes Afreximbank’s strategic relevance to the (African) continent and its ability to execute its strategic objectives and mission, as well as its ability to meet the needs of member countries in different situations even in the most challenging times. capabilities at the development stage. “It believes Afreximbank’s ratings will remain stable over the next 12 to 18 months.
Reaction to the rating announcement, Denys Denya, Senior Executive Vice President, Afreximbank Noting that the rating represents the strongest endorsement the bank has received from any credit rating agency and that the bank has become one of the first African multilateral financial institutions to receive the highest credit rating in the Chinese market, particularly on the strength of its stance – Individual credit profile.
“This is yet another testament to the Bank’s systemic relevance to the continent; strong delivery of its development mandate; and its prudent risk management practices and relentless focus on capital and liquidity over the years, culminating in a formidable rating,” This provides us with new opportunities to raise competitively priced capital in China and diversify our financing partnerships,” continued Mr. Denya.
He confirmed that the Bank will continue to play a key role in promoting trade and investment among Central African member countries and highlighted the strong relationships that the Bank enjoys, which demonstrate its commitment to delivering on the African Union’s key strategic economic plans and initiatives across the continent. and diaspora, thereby integrating global Africa.
Mr Denya said the rating puts Afreximbank on a stronger footing as it continues to leverage the best financial resources into Africa as it engages in fundraising activities in relatively new capital markets.
He pointed out that the “AAA” credit rating will provide the bank’s new and old financing partners in China with the greatest guarantee, support the bank’s financing activities on competitive terms, and enable the bank to achieve its development mission and goals.
Since 2019, Afreximbank has grown its assets by 28% (5-year CAGR), with an average return on equity of 11% and a capital adequacy ratio of 25.5% on average, a growth that has been strongly supported by shareholders . The company launched its largest general capital increase plan in 2021, aiming to raise US$2.6 billion by 2026, but despite the turbulent macroeconomic environment, it achieved nearly 90% of the target within three years, fully demonstrating the support of shareholders.
Afreximbank continues to enjoy strong market access and plans to diversify its financing base into new debt capital markets, building on the huge success of its first Samurai bond issuance in 2024. The bank will explore opportunities to enter China’s panda bond market in 2025, support and promote the accelerated development of trade and investment between China and Africa, and expand existing financing partnerships.
Distributed by APO Group on behalf of Afreximbank.
Media contact information:
vincent city
Communications and Events Manager (Media Relations)
e-mail: press@afreximbank.com
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About Afreximbank:
The African Export-Import Bank (Afreximbank) is a pan-African multilateral financial institution whose mission is to finance and facilitate intra-African and external trade. For 30 years, the World Bank has been providing financing solutions through innovative structures to support the transformation of Africa’s trade structure, accelerate industrialization and intra-regional trade, thereby promoting Africa’s economic expansion. As a staunch supporter of the African Continental Free Trade Agreement (AfCFTA), Afreximbank launched the Pan-African Payments Settlement System (PAPSS) and was adopted by the African Union (AU) as a payment settlement platform to support the implementation of the agreement. African Continental Free Trade Area. The World Bank is working with the African Continental Free Trade Area Secretariat and the African Union to establish a US$10 billion adjustment fund to support countries that participate effectively in the African Continental Free Trade Area. As of the end of December 2023, Afreximbank’s total assets and contingencies exceeded US$37.3 billion, with shareholder funds reaching US$6.1 billion. Afreximbank has investment grade ratings from GCR (International Grade) (A), Moody’s (Baa1), Japan Credit Rating Agency (JCR) (A-) and Fitch (BBB). Afreximbank has evolved into a group entity consisting of the Bank, its impact fund subsidiary Africa Export Development Fund (FEDA) and its insurance management subsidiary AfrexInsure (together the “Group”). The bank is headquartered in Cairo, Egypt.
For more information, please visit:
www.Afreximbank.com
