Africa Finance Corporation (AFC), an African infrastructure finance institution, has been assigned a long-term issuer credit rating of A+ with a stable outlook by Japan Credit Rating Agency, Ltd. (JCR). The rating enhances AFC’s ability to expand its footprint in Asian capital markets and reflects its financial strength and governance.

JCR highlighted AFC’s solid capital base, conservative financial policies, preferred creditor status, and diverse funding sources, including Eurobonds, multilateral development banks, and private institutions across Africa, Asia, Europe, and the Middle East.

For fiscal year 2024, AFC posted a 22.8% revenue increase, surpassing US$1 billion for the first time, with total assets reaching US$14.41 billion. The Corporation maintained a strong Capital Adequacy Ratio of 33.6% and liquidity coverage ratios above prudential requirements, underscoring its resilience.

AFC’s strategic infrastructure projects span power, transport, natural resources, heavy industry, telecommunications, and technology. The Lobito Corridor project, linking Angola’s Atlantic port to Zambia via modern rail, exemplifies AFC’s role in driving regional trade and industrial integration.

Other key investments include US$150 million in the Kamoa-Kakula copper mine and a €381.5 million financing package for Angola’s road network upgrades.

Japanese banks—Mizuho, MUFG, and Sumitomo Mitsui—have been critical partners, supporting AFC’s funding efforts through bilateral, syndicated, and Samurai loans. This partnership also helped facilitate Egypt’s inaugural Samurai bond issuance, with AFC as re-guarantor.

AFC’s innovative capital market activity includes a US$500 million perpetual hybrid bond, a US$400 million Shariah-compliant Murabaha, and Nigeria’s first domestic dollar bond, which raised over US$900 million.

JCR praised AFC’s comprehensive risk management across credit, market, liquidity, operational, and environmental/social risks. The rating affirms AFC’s ability to mobilize competitively priced capital for transformative projects across Africa despite geopolitical challenges.

AFC’s leadership said the rating strengthens its position as a trusted partner for Africa-Japan cooperation and its mission to advance the continent’s infrastructure development.