Finance

Afreximbank Plans to Issue Panda Bonds in China Following AAA Rating

Afreximbank Plans to Issue Panda Bonds in China Following AAA Rating
Wednesday, 22 January 2025 09:22

This new recognition boosts the bank's standing in the global financial world, creating fresh opportunities for funding trade and infrastructure projects in Africa. Following a successful Samurai bond launch in Japan in 2024, the bank is now looking to use its triple-A rating to attract Chinese investors.

Afreximbank, rated triple-A, is set to enter China’s capital market in 2025. After raising ¥81.3 billion (around $520 million) through Samurai bonds in Japan last November, the African trade bank now plans to launch Panda bonds, which are denominated in yuan. This move aims to diversify its funding sources and boost its support for African trade, particularly with China, which has become the continent’s largest trading partner, with trade exceeding $282 billion.

Last week, the Cairo-based bank received a prestigious "AAA/stable" rating from China Chengxin International Credit Rating (CCXI), becoming the first African multilateral financial institution to earn such a distinction. Moody’s is a shareholder in CCXI. The agency forecasts that the rating will remain stable for the next 12 to 18 months.

CCXI highlighted several factors in granting this rating, including Afreximbank's strong strategic position, solid risk management, profitability, and prudent liquidity management. The agency also praised the bank’s ability to meet the needs of its member states, even amid challenging economic conditions.

Denys Denya, the bank’s executive vice president, called the rating a significant achievement. “This is, again, a testament to the Bank’s systemic relevance to the African continent; its strong delivery of its developmental mandate; its prudent risk management practices and its relentless focus on capital and liquidity over the years which have culminated in a formidable rating that provides us with new opportunities to raise competitively priced capital in China and to diversify our funding partnerships,” he said.

Founded in 1993 to promote intra-African trade, Afreximbank has seen rapid growth in recent years. Its assets have grown by an average of 28% annually since 2019, and its return on equity is 11%. In 2021, it launched a $2.6 billion capital increase, of which 90% has already been mobilized, despite a challenging global economic environment.

Last year’s Samurai bond issuance, rated "A-" by the Japan Credit Rating Agency (JCR), attracted significant interest, with nearly 150 orders from a range of investors, including asset managers, banks, and insurance companies.

On the same topic
Net profit jumped to $376 million as revenue rose 25.8% to $2.98 billion. Data overtook voice as the top revenue source, up 37%...
Moniepoint shows that building financial infrastructure, not chasing app users, can attract serious long-term investors like Swedfund. Nigeria’s...
Ecobank posted a net profit of $454.5 million, up 34% year-on-year. Revenue rose 18% to $1.75 billion, driven by growth in all business...
Nigeria's Federal Inland Revenue Service (FIRS) imposed a new 10% withholding tax (WHT) on interest from short-term financial securities. The...
Most Read
01

Sonatel is a major telecom company in West Africa that investors trust, offering steady growth and...

Sonatel Stock Nearly 19% Rise Over the Year, Signals Undervalued Telecom Giant Poised for Further Growth
02

Wave launches Wave Bank Africa in Côte d'Ivoire with $32M capital Move follows €117M fu...

Wave Launches Commercial Bank in Côte d’Ivoire
03

Cameroon's Constitutional Council declared Paul Biya the winner of the presidential election, secu...

Presidential Elections: Paul Biya Declared Winner in Cameroon, Alassane Ouattara Favorite in Ivory Coast
04

ECOWAS will integrate AI into its early warning systems to strengthen crime prevention and intelli...

ECOWAS Deploys Artificial Intelligence to Combat Organized Crime
05

NGE wins two contracts for sanitation, coastal protection in Senegal Projects target Dakar’s Hann...

Senegal Selects French Group NGE for Two Environmental and Heritage Projects
Enter your email to receive our newsletter

Ecofin Agency provides daily coverage of nine key African economic sectors: public management, finance, telecoms, agribusiness, mining, energy, transport, communication, and education.
It also designs and manages specialized media, both online and print, for African institutions and publishers.

SALES & ADVERTISING

regie@agenceecofin.com 
Tél: +41 22 301 96 11 
Mob: +41 78 699 13 72


EDITORIAL
redaction@agenceecofin.com

More information
Team
Publisher

ECOFIN AGENCY

Mediamania Sarl
Rue du Léman, 6
1201 Geneva
Switzerland

 

Ecofin Agency is a sector-focused economic news agency, founded in December 2010. Its web platform was launched in June 2011. ©Mediamania.

 
 

Please publish modules in offcanvas position.