• TCS plays a key role in fulfilling AFC’s mandate by offering solutions to clients and project sponsors that aid in de-risking their projects
• Our risk management solutions offer cross asset hedging solutions that cut across various forms of swaps, forwards and options that are structured to deliver bespoke hedges, tailored to the needs of our clients. This includes Interest Rate Swaps, Interest Rate Caps and Collars, Swaptions, Cross Currency Swap, FX Swaps and Deliverable and Non- Deliverable Forwards, Commodity Swaps and Options
• Our client base covers a wide spectrum from DFIs, Sovereigns, central banks, and real sector players across our African footprint

• Foreign Currency Funding Solutions:

AFC offers foreign currency funding to clients looking to diversify their funding sources through well-structured, collateralised funding solutions. Our clients have the option to leverage their financial assets including their local currency cash and securities. This solution presents our clients with a non-traditional alternative to fund their liquidity gaps through raising foreign currency funding against local currency cash or/and local /hard currency securities. This includes Total Return Swaps, Repos, Cross Currency Swap, FX Swaps and Deliverable and Non-Deliverable Forwards, Commodity Swaps and Options

• Local Currency funding

AFC leverages its strong foreign currency balance sheet to provide long-term local-currency solutions and helps clients match the same local currency denomination of assets and liabilities, thereby eliminating exchange rate volatilities and creating sustainable businesses for clients

• Commodity Linked Financing

Money market instruments are short-term instruments with maturities of one year or less which financial institutions, corporates and governments utilise to access funding to meet their near-term cashflow needs. AFC Treasury provides short term financing to financial institutions and sovereigns by investing in various money market instruments such as placements, commercial papers, certificate of deposits and promissory notes. The Corporation can also invest in treasury bills instruments issued by sovereigns to support their short-term financing needs and to plug fiscal deficits.

As part of its funding activities, AFC can also raise financing in the money market by taking US dollar-denominated deposits from financial institutions and sovereign entities. By investing with AFC, counterparties will be gaining exposure to an investment-grade African Supranational, and they will be supporting the Corporation’s mandate on the continent.

Fixed income securities are debt instruments usually with maturities of 2 years and longer for Private Placements notes and 5 years or longer for Eurobonds. These securities are issued by financial institutions, corporates, sovereigns, and other entities that access the global markets to meet their funding requirements for expansion, infrastructure development, working capital, and refinancing.

In line with AFC’s investment mandate in the African continent, AFC Treasury supports several African issuers in the international debt capital markets, by investing in Private Placement notes and Eurobond securities issued by African entities. The Corporation’s investments in these fixed income securities are originated either via primary market issuances or the secondary market. AFC’s sustained commitment to these transactions continues to demonstrate the Corporation’s strong appetite to supply capital to support the funding requirements of African entities for the development of the continent.

AFC Treasury also operates in the international Repo market where money market securities and fixed income instruments are utilised as collateral by various counterparties to raise financing to meet their liquidity requirements. AFC has executed several Repo transactions to fund the Corporation’s balance sheet and to provide financing to our counterparties.