African Export-Import Bank (Afreximbank) has received the top rating from the largest Chinese rating agency, offering a boost to the bank as it eyes fresh capital.
China Chengxin International Credit Rating Co., Ltd (CCXI) assigned Afreximbank the “AAA” issuer credit rating with a stable outlook, recognising the lender as one of the largest multilateral institutions on the continent.
Afreximbank becomes the first African multilateral financial institution to receive the top rating.
The agency noted that the rating considered among other metrics, Afreximbank’s “very high” strategic positioning, sound risk management system, agility and adaptability in business generation, very strong profitability and prudent liquidity management.
“CCXI recognises Afreximbank’s strategic relevance to the (African) continent and its ability to execute on its strategic goals and mandate and to meet the needs of member states at different stages of development, even during the most challenging times,” said CCXI.
Afreximbank senior executive vice president Denys Denya said the rating represented the strongest endorsement the Bank had received from any credit rating agency and validates its relevance in the African continent.
He added that the rating puts Afreximbank on a stronger footing as it embarks on fundraising activities in a relatively new capital market to leverage optimal financial resources into Africa.
“This is, again, a testament to … relentless focus on capital and liquidity over the years which have culminated in a formidable rating that provides us with new opportunities to raise competitively priced capital and to diversify our funding partnerships,” said Mr Denya.
He pointed out that the ‘AAA’ credit rating would give utmost assurance to the bank’s new and existing funding partners in China to support fundraising activities on competitive terms and position it to pursue its developmental mandate and objectives.
Afreximbank launched its largest general capital increase in 2021, aiming to raise $2.6 billion (Sh336.3 billion) by 2026, but achieved nearly 90 per cent of that target in three years as shareholders put in money despite volatile macroeconomic circumstances.
Afreximbank continues to enjoy strong market access and aims to diversify its funding base into new debt capital markets, on the back of its highly successful inaugural Samurai bond issuance in 2024.
It will be exploring opportunities to tap into the Chinese Panda bond market this year to support and facilitate accelerated trade and investment between China and Africa and to expand its existing funding partnerships.