By Amadou Labba Sall
Cairo, 23 August 2022 – African Export-Import Bank (Afreximbank) has announced that Japan Credit Rating Agency (JCR) has affirmed its long-term issuer rating of A- and maintained the “Stable” outlook. The affirmation of Afreximbank’s issuer rating is testament of the Bank’s ever strengthening credit profile and positions to continue to expand and escalate its interventions in Africa, in whose long-term economic development it plays a pivotal role.
JCR Rating Agency noted, in its assessment, the strategic role that Afreximbank’s current Sixth Strategic Plan (2022-2026) plays towards the Bank’s fulfilment and deliverance of its mandate, as well as its crucial work in support of initiatives aligned with the goals of the African Union (AU). Moreover, JCR identified strong shareholder support for Afreximbank’s operations, citing as evidence the healthy progression of capital increases since 2014 as well as the African Union supported US$6.5 billion General Capital Increase (GCI) approved by the Bank’s Board of Directors in June 2021. The credit rating agency further contended that the Bank’s solid earnings capacity would protect its financial base even if the economic impact of the Ukraine crisis worsens.
Mr. Denys Denya, Afreximbank’s Executive Vice President in charge of Finance, Administration and Banking Services,commented:
“The affirmation of Afreximbank’s A- rating during a period characterized by the continuing COVID 19 crisis and economic shocks caused by the Russia-Ukrain conflict, as well as JCR’s evident confidence in the Bank’s ability to deliver for its shareholders, represent important validation of our commitment to Africa and her development. The A- rating reflects the Bank’s strong capital, excellent liquidity and good profitability in addition to the many critical initiatives supporting implementation of the AfCTA such as PAPPS and the AfCTA Adjustment Facility. Backed by such a strong credit rating, Afreximbank will be able to access additional investors in support of the Bank’s fundraising activities and attract funding on more competitive terms.”
African Export-Import Bank (Afreximbank) is a Pan-African multilateral financial institution mandated to finance and promote intra-and extra-African trade. Afreximbank deploys innovative structures to deliver financing solutions that support the transformation of the structure of Africa’s trade, accelerating industrialization and intra-regional trade, thereby boosting economic expansion in Africa. A stalwart supporter of the African Continental Free Trade Agreement (AfCFTA), Afreximbank has launched a Pan-African Payment and Settlement System (PAPSS) that was adopted by the African Union (AU) as the payment and settlement platform to underpin the implementation of the AfCFTA. Afreximbank is working with the AU and the AfCFTA Secretariat to develop an Adjustment Facility to support countries in effectively participating in the AfCFTA. At the end of 2021, the Bank’s total assets and guarantees stood at about US$25 billion, and its shareholder funds amounted to US$4 billion. Afreximbank disbursed more than US$51 billion between 2016 and 2021. The Bank has ratings assigned by GCR (international scale) (A), Moody’s (Baa1), Japan Credit Rating Agency (JCR) (A-) and Fitch (BBB). The Bank is headquartered in Cairo, Egypt.
For more information, visit: www.afreximbank.com.
Amadou Labba Sall: email@example.com