JCR Rating Agency Ltd. Announces Afreximbank International-Scale Long Term Issuer Rating of A-

Categories: Press Releases

Cairo, 20 December 2021 – African Export-Import Bank (Afreximbank) has received an inaugural international-scale long term issuer rating of A- with a stable outlook from the Japan Credit Rating Agency (JCR). The rating reflects the strong support that Afreximbank receives from its shareholders, its preferred creditor status, its solid earnings capacity, and the crucial role that the Bank plays in supporting key African Union (AU) initiatives.

JCR noted in its assessment the growing pre-eminence of Afreximbank in African trade, citing the Bank’s involvement in critical initiatives that underpin the African Continental Free Trade Area (AfCFTA) as a key indicator. This new rating also captures the Bank’s key strength in structured trade finance, demonstrating its ability to de-risk its lending portfolio. JCR observes that “under this circumstance, the Bank mitigates credit risk through measures including the use of the structured trade finance scheme to transfer payment risk to counterparties with higher creditworthiness, insurance and collateralization.”

Afreximbank’s achievement of the A- rating from a second rating agency is a major milestone, coming at the end of its current strategic plan. It supports the fulfilment of one of the overarching pillars of the strategic plan, namely financial soundness, which helps the Bank to leverage competitive financial resources into the continent.

Strong credit rating gives assurance to investors who support Afreximbank’s fundraising activities as it demonstrates strong creditworthiness, thereby attracting funding at competitive terms. The Bank plans to execute a debt capital market transaction in Japan and this strong rating by JCR is essential as it gives lenders and investors confidence in the Bank’s credit profile.

Prof. Benedict Oramah, President of Afreximbank, commented:

“The A- rating assigned to Afreximbank is an affirmation of the Bank’s strengthening credit profile, underpinned by a strong risk management culture. We are also pleased that the work of the Bank supporting such initiatives as the AfCFTA is being recognized and its importance rewarded. This high rating which comes as the Bank is about to embark on a new 5-year strategic plan gives impetus to our fundraising activities. This will positively impact Afreximbank’s ability to deliver on its mandate.”

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About Afreximbank

African Export-Import Bank (Afreximbank) is a Pan-African multilateral financial institution mandated to finance and promote intra-and extra-African trade. Afreximbank deploys innovative structures to deliver financing solutions that support the transformation of the structure of Africa’s trade, accelerating industrialization and intra-regional trade, thereby boosting economic expansion in Africa. The Bank has a rich history of intervening in support of African countries in times of crisis. Through the Pandemic Trade Impact Mitigation Facility (PATIMFA) launched in April 2020, Afreximbank has disbursed more than US$6.5 billion in 2020 to help member countries manage the adverse impact of financial, economic, and health shocks caused by the COVID-19 pandemic. A stalwart supporter of the African Continental Free Trade Agreement (AfCFTA), Afreximbank has completed the development of a Pan-African Payment and Settlement System (PAPSS) that was adopted by the African Union (AU) as the payment and settlement platform to underpin the implementation of the AfCFTA. Afreximbank is working with the AU and the AfCFTA Secretariat to develop an Adjustment Facility to support countries in effectively participating in the AfCFTA. At the end of 2020, the Bank’s total assets and guarantees stood at US$21.5 billion, and its shareholder funds amounted to US$3.4 billion. Afreximbank disbursed more than US$42 billion between 2016 and 2020. The Bank has ratings assigned by GCR (international scale) (A-), Moody’s (Baa1) and Fitch (BBB-). The Bank is headquartered in Cairo, Egypt.

For more information, visit: www.afreximbank.com.

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Media Contact

Amadou Labba Sall: asall@afreximbank.com