Africa Finance Corporation (AFC), a development finance institution based in Lagos, Nigeria, has obtained its first international credit rating from Moody’s, the global rating agency, for its robust capital position, it emerged on Monday.
Moody’s said it had allocated AFC an A3 and P2 foreign currency debt rating on the back of a solid sensible framework that boosts a “high degree of liquidity and outstanding profit margin and retention.”
Andrew Alli, the CEO AFC, described the grading by Moody’s as a great feat considering the institution was launched only six years ago. He also described this as a milestone in the history of the organization.
“This rating…will enable AFC to grow its balance sheet, broaden its asset base and expand its geographical footprint,” Alli said in a statement.
AFC was launched in 2007 as a private sector-led pan-African multilateral development finance institution, with an initial capital base of $1.1 billion. It is not clear what the capital base is currently.
It was launched to assist with closing an important gap in the provision of project structuring expertise and risk capital to tackle Africa’s infrastructure development requirements.