Africa Finance Corporation (AFC) Earns Top AAAspc Rating.

LAGOS, Nigeria, January 16, 2025/ — The Africa Finance Corporation (AFC), Africa’s leading infrastructure solutions provider, has earned an exceptional AAAspc issuer credit rating with a stable outlook from S&P Global (China) Ratings, affirming AFC’s financial strength, disciplined capital management, and expanded access to diversified funding. This rating follows a similar recognition from China Chengxin International Credit Rating Co. Ltd (CCXI), marking AFC’s second AAA rating.

The AAAspc rating reflects AFC’s robust liquidity, superior governance framework, and its consistent ability to achieve strategic objectives. S&P Global (China) Ratings praised AFC for maintaining strong asset quality and ample capital buffers, even amid challenging economic conditions. The agency noted, “AFC has a very solid liquidity buffer, enabling its normal functioning in adverse market and economic conditions,” and highlighted the Corporation’s commitment to a diversified funding strategy with a global investor base.

Samaila Zubairu, President & CEO of AFC, emphasized the significance of the AAAspc rating, stating, “This recognition solidifies AFC’s position as a resilient and reliable bridge connecting Africa to global capital markets. It highlights our financial resilience and underscores our critical role in leveraging dynamic capital markets to channel investment into transformative infrastructure projects across Africa.”

AFC’s Basel II capital adequacy ratio stood at 34.7% as of mid-2024, well above the Corporation’s internal target of 30%. Its 12-month liquidity coverage for the fiscal year 2023 exceeded 400%, ensuring continued resilience in the face of market volatility. S&P also commended AFC’s proactive credit risk management, which includes third-party insurance covering nearly 18% of its loan portfolio, strengthening its position as a leading multilateral development finance institution.

AFC has deepened its collaboration with Asian financial institutions to secure funding for major infrastructure projects. In 2024, AFC finalized a US$1.16 billion syndicated loan co-led by the Bank of China and the Industrial and Commercial Bank of China (ICBC) London Branch. In 2023, AFC also secured a five-year loan facility from The Export-Import Bank of China (CHEXIM), aimed at boosting trade finance and supporting private sector initiatives.

Looking forward, AFC plans to leverage its strong financial foundation and high credit ratings to explore new funding avenues, including the potential issuance of a panda bond. This renminbi-denominated bond will help AFC diversify its funding sources, expand its investor base, and bolster its efforts in financing critical infrastructure projects across Africa.

The AAAspc rating strengthens AFC’s standing as a world-class issuer and paves the way for deeper engagement with global and Chinese investors, helping drive the growth of infrastructure and economic transformation across the continent.