NewsFeedsRSS 2.0

AFC’s international investment grade credit rating awarded for third consecutive year

Moody’s ratings agency reaffirms AFC’s A3/P-2 credit rating with stable outlook

Lagos, June, 2016: Africa Finance Corporation (AFC), a leading investment grade rated multilateral development finance institution and project developer, has been awarded an A3/P-2 , investment grade credit rating with a stable outlook by international ratings agency Moody’s for a third consecutive year.

According to Moody’s, this rating has been assigned to AFC because of its “sound capital adequacy, high liquidity, no non-performing loans and only a small impairment provision on its balance sheet.” 

The rating takes into account AFC’s inevitable expansion over the next few years and also accounts for the natural risks of exposure to economic and political challenges which may impact the rating. However Moody’s also highlights that AFC's profitability metrics are high compared to those of its peers, providing substantial return on investment for its stakeholders.

Andrew Alli, CEO of AFC, commented on the announcement: “This last year, characterized by the global economic slowdown and weak commodities markets, has not been an easy one. AFC has done particularly well to retain its strong credit rating and maintain its status as one of the highest investment grade-rated multilateral financial institutions in Africa.

“This rating vindicates the quality of AFC’s work, the diversity of our asset portfolio and our ability to deliver a sound return to our investors. It will enable us to continue proactively financing and developing the infrastructure required to drive Africa’s economic development and improve the lives of the people living on the continent.”

To date the Corporation has invested US$3.2 billion in projects across 25 African countries and in a wide range of sectors including power, telecommunications, transport and logistics, natural resources, and heavy industries.

About AFC -

AFC, an international investment grade multilateral finance institution, was established in 2007 with an equity capital base of US$1 billion, to be the catalyst for private sector infrastructure investment across Africa.  With a current balance sheet size of approximately US$3.2 billion, AFC is now the second highest investment grade rated multilateral financial institution in Africa with an A3/P2 (Stable outlook) rating from Moody’s Investors Service. In May 2015, AFC successfully concluded a debut US$750 million Eurobond issue which was 7 times oversubscribed and attracted investors from Asia, Europe and the USA.  

AFC’s investment approach combines specialist industry expertise with a focus on financial and technical advisory, project structuring, project development and risk capital to address Africa’s infrastructure development needs and drive sustainable economic growth.  

AFC invests in high quality infrastructure assets that provide essential services in the core infrastructure sectors of power, natural resources, heavy industry, transport, and telecommunications.  

Follow us on Twitter - @africa_finance