Afreximbank, a continental trade finance institution officially known as the African Export-Import Bank, has achieved a significant milestone by securing a ‘AAA/Stable’ rating from China Chengxin International Credit Rating Co., Ltd (CCXI). This prestigious rating marks Afreximbank as the first African multilateral financial institution to attain such a high creditworthiness assessment from CCXI, a leading Chinese credit rating agency. The rating reflects the bank’s robust financial standing, strategic importance to the African continent, and its ability to navigate challenging economic environments effectively. This achievement signifies growing confidence in Afreximbank’s role as a catalyst for economic development and trade expansion within Africa and its increasing global engagement, particularly with China.
CCXI’s assessment underscores several key strengths that contributed to Afreximbank’s AAA rating. The agency highlighted the bank’s strategic positioning within the African financial landscape, its robust risk management framework, its agility and adaptability in generating business, and its consistently strong profitability. Furthermore, CCXI acknowledged Afreximbank’s prudent liquidity management, evidenced by a remarkably high coverage ratio of current assets to short-term debts. This strong liquidity position further bolsters the bank’s financial stability and resilience against potential economic shocks. CCXI also recognized Afreximbank’s responsiveness to the diverse needs of its member states across various stages of development, even during times of economic adversity. This recognition reinforces the bank’s role as a vital partner in fostering sustainable economic growth and development across the African continent.
Afreximbank’s senior leadership has expressed immense satisfaction with the AAA rating, emphasizing its significance as the highest endorsement received from any credit rating agency to date. This achievement, they note, solidifies Afreximbank’s position as one of the premier African multilateral financial institutions and showcases its strong, stand-alone credit profile. The rating not only validates the bank’s systemic relevance to the African continent but also serves as a testament to its effective execution of its developmental mandate. The AAA rating further underscores the institution’s prudent risk management practices, careful stewardship of capital, and consistent focus on maintaining strong liquidity. These factors have combined to create a formidable credit profile, providing Afreximbank with enhanced access to capital markets and opportunities to diversify its funding sources.
Afreximbank views the AAA rating as a powerful tool that will facilitate its fundraising initiatives in the Chinese capital market. The rating is expected to inspire confidence among both new and existing funding partners in China, encouraging them to support the bank’s activities on competitive terms. This, in turn, will empower Afreximbank to more effectively pursue its developmental mandate and objectives, further contributing to the economic progress of the African continent. The bank anticipates leveraging this enhanced credibility to expand its partnerships, specifically targeting the Chinese Panda bond market in the near future. This strategic move aligns with Afreximbank’s commitment to fostering stronger trade and investment ties between Africa and China, thereby unlocking greater economic opportunities for both regions.
Afreximbank’s financial performance over recent years provides further evidence of its robust and sustainable growth trajectory. Since 2019, the bank has experienced a substantial 28% asset growth, achieved an impressive 11% return on average equity, and maintained a healthy capital adequacy ratio of 25.5%, on average. This consistent growth, supported by strong shareholder confidence, underscores the bank’s financial strength and its ability to deliver on its strategic objectives. The successful launch of a significant general capital increase in 2021, exceeding initial targets despite challenging global economic conditions, further demonstrates the strong support Afreximbank enjoys from its shareholders. This robust capital base positions the bank to pursue future growth opportunities and to continue supporting the expansion of trade and investment within Africa.
The successful issuance of Afreximbank’s inaugural Samurai bond in 2024 signifies the bank’s increasing appeal to international investors and its ability to access diverse capital markets. Building upon this success, the bank is actively exploring opportunities to tap into the Chinese Panda bond market in 2025. This strategic move aims to further diversify the bank’s funding sources while deepening its engagement with the Chinese financial market. By accessing the Panda bond market, Afreximbank seeks to raise capital on competitive terms, enabling it to support and facilitate accelerated trade and investment flows between China and Africa. This initiative aligns with the bank’s broader vision of strengthening economic partnerships and promoting sustainable development across the African continent.
