Moody’s affirms AFC’s A3 rating for 11th year, outlook stable

The Africa Finance Corporation (AFC) has had its long-term issuer credit rating of A3 reaffirmed by Moody’s Ratings, with a stable outlook, marking the 11th consecutive year the pan-African infrastructure financier has maintained the high-grade investment rating.

Moody’s also affirmed AFC’s short-term issuer rating at P-2, underscoring the Corporation’s position as one of the continent’s most highly rated institutions, a statement from the corporation said on Monday.

The global ratings agency cited AFC’s “sound liquidity buffer backed by high-quality treasury assets and resilient asset performance” as key strengths, despite the elevated country risks in parts of its operational footprint and the comparatively low ratings of some of its shareholders.

The Lagos-headquartered institution reported its strongest financial results in 2024, surpassing $1 billion in revenues, with total assets climbing 16.7% to $14.41 billion. AFC also maintained a robust Capital Adequacy Ratio of 33.6% and reported Liquidity Coverage Ratios well above its 100% benchmark, at 194% under normal conditions and 191% under stress.

Moody’s noted that these fundamentals have enabled AFC to keep borrowing costs among the lowest in Africa, a position that allows it to mobilise significant capital for large-scale projects. Over the past year, AFC has financed a series of strategic ventures, including the Lobito Corridor railway linking Angola, the Democratic Republic of Congo and Zambia, and a $150 million investment in the Kamoa-Kakula Copper Complex, one of the world’s largest and most sustainable copper producers.

“Moody’s reaffirmation of our A3/P-2 ratings for the eleventh consecutive year is a strong testament to AFC’s robust financial strength and resilience, even amidst global headwinds,” said Samaila Zubairu, President & CEO of AFC. “It reinforces our ability to consistently access long-term capital at competitive rates to deliver on our mandate to finance transformational infrastructure projects that integrate Africa and enable its industrialisation.”

The ratings agency also commended AFC’s diversified funding plan, which leverages instruments such as green bonds, sukuk, private placements and ESG-linked products to broaden investor appeal. Analysts rated AFC’s funding quality at “a” and its liquid resources buffer at “aaa,” reflecting what Moody’s described as “a conservative liquidity policy and strong high-quality liquidity position relative to peers.”

In recent months, AFC has expanded its market reach with a $500 million perpetual hybrid bond, a $400 million Shariah-compliant Commodity Murabaha, and a $1.5 billion syndicated loan that exceeded its $1.3 billion launch target. The transaction drew investors from the Middle East, Africa, Asia and Europe, reinforcing global confidence in AFC’s creditworthiness and development strategy.

With this latest rating affirmation, AFC remains among the few African financial institutions consistently maintaining investment-grade status, strengthening its ability to raise competitively priced capital to fund infrastructure that drives economic integration and industrialisation across the continent.