Japan’s JCR sees Afreximbank’s rating stable for 18 months

CAIRO: JAPAN Credit Rating Agency, Ltd. (JCR) has affirmed African Export-Import Bank’s A-issuer credit rating with a stable outlook.

An A-issuer credit rating signifies “high creditworthiness” with strong financial characteristics but is somewhat more susceptible to adverse conditions than higher ratings.

The rating reflects JCR’s assessment of Afreximbank’s strong strategic positioning, robust risk management framework, consistent profitability, prudent liquidity policies, and resilient capital base.

JCR also noted the bank’s important role in supporting trade finance and economic development across Africa and the Caribbean.

The rating agency stated that it expects Afreximbank’s rating to remain stable over the next 12 to 18 months, despite external macroeconomic challenges and potential pressures in its operating environment.

Reacting to the announcement, Mr. Denys Denya, Afreximbank’s Senior Executive Vice President, said the affirmation reinforces the Bank’s credibility in global markets and highlights its systemic importance to Africa.

“JCR’s rating underscores our strong fundamentals and prudent risk management practices,” he said. “It strengthens our ability to diversify our funding sources, including tapping into Japan’s capital markets, to further advance our mandate of promoting and financing intra- and extra-African trade.”

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Mr. Denya reaffirmed Afreximbank’s unwavering commitment to its member states, partners, and clients, noting that its consistent delivery, even in challenging times, has been a key driver behind its strong credit standing.

“This rating is a testament to the Bank’s resilience and strategic focus, enabling us to mobilise resources to drive trade and development in Africa and the Caribbean,” he added.

The JCR affirmation is expected to bolster confidence among investors and stakeholders, supporting Afreximbank’s ongoing efforts to expand its global funding base and enhance its market presence.

In line with this, Afreximbank successfully completed its inaugural Samurai bond issuance in Japan in 2024, raising JPY 81.3 billion (530m US dollars).

The transaction, which attracted strong participation from a diverse pool of Japanese institutional investors, underscored the Bank’s growing appeal in international capital markets and its ability to mobilise resources beyond traditional geographies.

The success of the issuance further demonstrates Afreximbank’s credibility and capacity to secure innovative funding solutions in support of its mandate.

Afreximbank is a Pan-African multilateral financial institution mandated to finance and promote intra- and extra-African trade.