African Export-Import Bank (Afreximbank), has been ranked as Africa’s #1 mandated lead arranger in sub-Saharan Africa, according to Bloomberg’s 2020 full-year “Capital Markets League Tables.”
This assessment of the Bank’s transactions recognizes the institution’s leadership role in mobilizing capital from both within and outside of the continent from a diverse range of investors and stakeholders for the financing needs of borrowers in Africa.
As Covid-19 caused a sudden retreat of capital and investors from the continent, Afreximbank undertook decisive action and mobilized its significant partnership-building expertise, as well as fulfilling its role as a counter-cyclical financial institution, broadening access to commercial capital even for borrowers from those countries where access to international finance remains challenging.
Afreximbank’s MLA activity has greatly mitigated the current economic downturn for many borrowers – easing the rise of potential borrower defaults in the sovereign, financial institution, and corporate sectors – and contributed to general continued investor confidence despite economic adversity.
Afreximbank played a leading and enabling role in nearly all the landmark deals across Africa during 2020, mobilizing capital from investors comprising banks, institutional investors, ECAs, DFIs as well as guarantee providers, spanning from Africa, the US, Europe, Middle East, and Asia.
The Bank is delighted to have surpassed 2019’s second-place MLA ranking and is determined to maintain this momentum into 2021. Indeed, as the year ahead promises further challenges, with the continued menace of Covid-19 and associated economic difficulties, Afreximbank reiterates its commitment to close cooperation with all of its lending partners.
Afreximbank’s pivotal role in the African syndicated loans market is also reflected in the third-place ranking in the Administrative Agent category – a position reflecting significant progress since 2019 when the Bank was placed eighth.
The League Tables – published quarterly and annually – rank banks and financial institutions, in different categories, namely arrangers, book-runners, Administrative Agents and advisors across diverse transactions which include loans, bonds, and M&A activities. The Bloomberg Sub-Sahara Africa league tables exclude North-African transactions, and therefore do not constitute a comprehensive assessment of Afreximbank’s extensive syndicated loan activities in that important region.
Afreximbank very much sees its activities in the areas outlined above as complementary and supplementary to the operations of commercial banks in Africa.
Prof. Benedict Oramah, President of Afreximbank, said: “I am delighted to see the Bank’s important work in the African syndicated loans market recognized by Bloomberg. We are particularly pleased to be ranked Number 1 in the mandated lead arranger category. We are further encouraged by the dramatic improvement in the rating of the Bank’s Administrative agency work.
As trading under the African Continental Free Trade Agreement (AfCFTA) begins to gather momentum, the Bank expects to play a pivotal role, alongside other partner institutions, in financing intra-African trade and fostering the economic advancement of the continent and the growing prosperity of its people.”
The African Export-Import Bank (Afreximbank) is a Pan-African multilateral financial institution with the mandate of financing and promoting intra-and extra-African trade.
Afreximbank was established in October 1993 and owned by African governments, the African Development Bank and other African multilateral financial institutions as well as African and non-African public and private investors.
The Bank was established under two constitutive documents, an agreement signed by member states, which confers on the Bank the status of an international organisation, and a Charter signed by all Shareholders, which governs its corporate structure and operations.
Afreximbank deploys innovative structures to deliver financing solutions that are supporting the transformation of the structure of Africa’s trade, accelerating industrialisation and intra-regional trade, thereby sustaining economic expansion in Africa.
At the end of September 2020, the Bank’s total assets and guarantees stood at USD$20.28 billion and its shareholders’ funds amounted to US$3.13 billion. Voted “African Bank of the Year” in 2019, the Bank disbursed more than US$38billion between 2016 and 2020. Afreximbank has ratings assigned by GCR (international scale) (A-), Moody’s (Baa1) and Fitch (BBB-). The Bank is headquartered in Cairo, Egypt.