Africa Finance Corporation Earns AAA Credit Rating from CCXI, Strengthening Ties with Asian Markets

LAGOS, Nigeria — Africa Finance Corporation (AFC) the continent’s leading infrastructure solutions provider, has achieved a significant milestone by receiving an AAA domestic credit rating with a stable outlook from China Chengxin International Credit Rating Co. Ltd (CCXI). This landmark rating allows AFC to expand its engagement in China’s extensive domestic debt capital markets, opening opportunities to attract a new pool of investors and diversify funding sources to drive industrialisation and critical infrastructure development across Africa.

CCXI analysts highlighted AFC’s robust strategic positioning and risk management framework, stating, “As a leading MDB in the region, AFC has clear strategic positioning and the ability to achieve its established goals. AFC implements a sound risk management framework and maintains a prudent risk appetite. Furthermore, its insured loan portfolio effectively mitigates the credit risk of its projects.”

Samaila Zubairu, President & CEO of AFC, described the rating as a significant endorsement, stating, “Receiving an AAA credit rating from CCXI is another pivotal validation of AFC’s strong credit profile and a defining moment in our capital-raising strategy. This recognition underscores our financial resilience, robust governance, and global reach. It will strengthen ties with Asian markets, driving essential investments in economic development, high-value job creation, and Africa’s prosperity.”

AFC plans to explore its first panda bond issuance, leveraging the AAA rating to deepen its engagement with Chinese bond investors. Banji Fehintola, Executive Board Member and Head of Financial Services at AFC, noted, “This credit rating positions us to further engage with the Chinese bond investor base in 2025 and beyond. This initiative reflects our commitment to leveraging global financial markets to support transformative infrastructure projects.”

The AAA rating affirms AFC’s financial strength and disciplined risk management approach. In 2023, AFC achieved remarkable financial results, including a 15.3% increase in profits to US$329.7 million and a 17.3% rise in total assets to US$12.3 billion, surpassing its strategic target of US$10 billion in assets. Its capital position, as measured by the Basel II ratio, remained robust at 34.5%, with liquidity coverage ratios standing at 161% under normal conditions and 143% in stress scenarios, highlighting its financial stability.

CCXI analysts commended AFC’s financial performance, stating, “AFC successfully achieved its strategic indicators during the 2019-2023 period. Over these five years, the average return on capital rose from approximately 7% to 12%, while total assets grew from about US$4.5 billion at the end of 2018 to US$12.3 billion at the end of 2023.”

AFC’s consistent expansion of its membership base further underscores its role as a key driver of African development. Since its establishment in 2007 with two founding member states, AFC has steadily grown its membership. Between 2023 and June 2024, new members included Ethiopia, Burundi, Sao Tome and Principe, and Swaziland.

CCXI analysts noted AFC’s influence across critical sectors such as energy, mining, transportation, and industry. These investments have bolstered its presence in the pan-African region and advanced climate action and energy transition initiatives. Notable projects include the Dangote Refinery in Nigeria, ARISE Integrated Industrial Platforms fostering industrialisation across Africa, and Infinity Energy, the continent’s leading renewable energy platform.

AFC has also established significant partnerships with Asian financial institutions. In 2024, AFC secured a landmark US$1.16 billion syndicated loan, with key roles played by the Bank of China and the Industrial and Commercial Bank of China (ICBC) London Branch. Among its multiple funding transactions in 2023, AFC received a five-year loan facility from The Export-Import Bank of China (CHEXIM) to enhance trade finance and support private sector projects.

These milestones highlight AFC’s strategic focus on fostering partnerships and collaboration to deliver sustainable, high-impact development outcomes. As a vital bridge between Africa’s infrastructure needs and global capital markets, AFC continues to demonstrate its capacity to advance transformative initiatives that fuel the continent’s growth and prosperity.