Africa Finance Corp Says New S&P ‘A’ Rating Will Support Cheaper Funding And Wider Lending
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Africa Finance Corp’s chief executive said the lender’s first credit rating from S&P Global should help it reduce borrowing costs and expand lending across the continent.
Samaila Zubairu told Reuters the ‘A’ rating S&P assigned to AFC’s long-term debt should strengthen market access and reinforce the lender’s investment-grade standing for most investors.
S&P cited AFC’s strong asset quality and very strong liquidity coverage, and also assigned an A-1 short-term credit rating alongside a positive outlook, which implies potential upgrades.
AFC already holds an A3 rating from Moody’s, an AAAspc rating from S&P Ratings (China) and an A+ rating from the Japan Credit Rating Agency, and S&P noted that Nigeria’s central bank and Nigerian financial institutions account for roughly 75% of AFC’s total shareholding.
Zubairu said demand is strongest for financing tied to gold mining, critical minerals, renewable energy and fertiliser, and he added that the U.S.-backed Lobito Corridor railway project is lifting interest in mining and agriculture linked to Zambia, the Democratic Republic of the Congo and Angola’s Lobito port.
He said AFC plans to keep raising funds through international bond issuance as well as sukuk, panda and samurai bonds, while also exploring its first funding involving private credit lenders, and he said the institution invested about $4 billion last year with a stronger pipeline expected to keep investment at or above 2025 levels.
