By Gabs Mia
Kinshasa, DRC: African Export-Import Bank (Afreximbank) has received back-to-back rating affirmations from Japan’s Credit Rating Agency (JCR) and China Chengxin International Credit Rating (CCXI), underscoring the lender’s resilience and growing international relevance as it deepens its foothold in Asian capital markets.
Tokyo-based JCR reaffirmed Afreximbank’s A- long-term issuer rating with a stable outlook, citing the Cairo-based lender’s strong strategic positioning, sound risk management framework, prudent liquidity policies and resilient capital base. Days later, CCXI, China’s leading domestic rating agency, confirmed its AAA rating with a stable outlook, highlighting Afreximbank’s very strong profitability, high coverage of current assets over short-term debt, and flexibility in business development.
Both agencies expect the bank’s credit profile to remain steady over the next 12 to 18 months despite persistent macroeconomic headwinds and pressures on its operating environment.
Asian Market Diversification
The dual rating affirmations come on the heels of Afreximbank’s successful debut bond issuances in Japan and China, marking critical milestones in the Bank’s diversification drive. In 2024, Afreximbank raised JPY 81.3 billion (about $530 million) through its inaugural Samurai bond, attracting a broad range of Japanese institutional investors.
Earlier this year, it issued its first Panda bond in the China Interbank Bond Market, raising RMB 2.2 billion ($303 million). The deal was oversubscribed, underscoring investor confidence in the Bank’s creditworthiness while establishing a benchmark for future African issuers.
“These affirmations reinforce Afreximbank’s credibility in global markets and strengthen our ability to diversify funding sources, particularly in Asia,” said Denys Denya, Senior Executive Vice President. He added that access to Samurai and Panda bond markets enhances the Bank’s mandate to finance and promote trade across Africa and the Caribbean, especially under challenging global conditions.
Systemic Importance
The recognition from Asia’s two most influential rating agencies underscores Afreximbank’s growing systemic importance beyond Africa. The Bank, which has total assets exceeding $40 billion and shareholder funds of $7.2 billion as of end-2024, plays a pivotal role in financing intra- and extra-African trade.
It has also anchored continental initiatives such as the Pan-African Payment and Settlement System (PAPSS) and a $10 billion Adjustment Fund to support implementation of the African Continental Free Trade Agreement (AfCFTA).
Denya emphasized that both ratings validate Afreximbank’s role as a preferred creditor across its 53 African and 13 Caribbean member states. “These achievements demonstrate our resilience and strategic focus, enabling us to mobilize resources to drive trade and development,” he said.
Investor Confidence
For investors, the dual ratings provide additional assurance of Afreximbank’s credit profile at a time when African sovereign and corporate issuers face rising borrowing costs and volatile markets.
Analysts note that investment-grade affirmations from both Japanese and Chinese rating agencies not only enhance Afreximbank’s appeal to Asian institutional investors but also reinforce its standing among global peers.
With African economies seeking greater financial integration with Asia, Afreximbank’s ability to tap Samurai and Panda markets signals an important pathway for other regional borrowers. “The Bank is setting benchmarks that could pave the way for greater African access to Asia’s deep pools of liquidity,” said one market observer.
Looking Ahead
As Afreximbank finalizes Phase II of its funding diversification strategy, its management has reiterated that the dual rating affirmations will serve as a foundation for expanding its global funding base.
Both JCR and CCXI stressed that the Bank’s outlook remains stable, providing it with room to pursue its ambitious mandate while navigating risks tied to Africa’s evolving economic landscape. By consolidating its credit standing in Asia and demonstrating consistent resilience, Afreximbank has reinforced its position as Africa’s financial bridge to global capital markets.
