Infrastructure solutions provider Africa Finance Corporation has received an AAA domestic credit rating with a stable outlook from China Chengxin International Credit Rating Co. Ltd.
According to a statement on Monday, the rating will enable AFC to deepen its engagement in China’s domestic debt capital markets, tap a new pool of investors, and further diversify its funding sources to accelerate industrialisation and critical infrastructure development across Africa.
In the rating report, CCXI analysts said, “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.”
The President & Chief Executive Officer of AFC, Samaila Zubairu, said, “Receiving an AAA credit rating from CCXI is another significant endorsement of AFC’s strong credit profile and a defining moment in AFC’s capital-raising strategy. This recognition at the highest level validates our financial resilience, robust governance, and global reach and will enable stronger ties with Asian markets to drive essential investment in economic development, high-value job creation, and Africa’s prosperity.”
Commenting on the rating, Executive Board Member and Head, Financial Services of AFC, Banji Fehintola, said, “Among various funding options, AFC intends to explore its first panda bond issuance in the near term.
This credit rating positions the corporation to further engage with the Chinese bond investor base in 2025 and beyond. This initiative also underscores AFC’s commitment to leveraging global financial markets to support transformative infrastructure projects. The AAA rating from CCXI affirms the Corporation’s intrinsic financial strength and disciplined approach to risk management.”
In 2023, AFC posted a 15.3 per cent increase in profits to $329.7m and a 17.3 per cent rise in total assets to $12.3bn. This surpassed AFC’s strategic target of $10bn in assets.
Regarding the strength of AFC’s financial performance, CCXI analysts said, “AFC successfully achieved its strategic indicators during the 2019-2023 period. Over the five years, the average return on capital rose from approximately seven to 12 per cent, while total assets increased substantially, growing from about $4.5bn at the end of 2018 to $12.3bn at the end of 2023.”
AFC has “expanded its investments and influence across key sectors such as energy, mining, transportation, and industry, which have bolstered its presence in the pan-African region and advanced its contributions to climate action and energy transition initiatives,” CCXI’s analysts wrote.
“Notable projects” cited include the Dangote Refinery in Nigeria, ARISE Integrated Industrial Platforms fostering industrialisation across Africa, and Infinity Energy, Africa’s leading renewable energy platform.
AFC enjoys significant support and collaboration with Asian financial institutions. In 2024, the Corporation secured a landmark $1.16bn syndicated loan, with pivotal roles played by the Bank of China and Industrial and Commercial Bank of China, London Branch. Among multiple funding transactions in 2023, AFC also received a five-year loan facility from the Export-Import Bank of China to enhance trade finance and support private sector projects.
