Business

Africa Finance Corporation (AFC) Receives Top Accolades at Europe, Middle East, and Africa (EMEA) Finance Achievement Awards

Published

11 months ago

June 7, 2024

Joel Ajayi

The award affirms AFC’s leadership in structuring and executing complex financial transactions that foster sustainable development across regions

Africa Finance Corporation (www.AfricaFC.org), the continent’s leading infrastructure solutions provider, received top accolades at the EMEA Finance Achievement Awards in London yesterday. AFC won “Most Innovative Bond” and the “Best Supranational Syndicated Loan,” a testament to the Corporation’s strong credit profile and solid track record in capital markets.

“The Most Innovative Bond” accolade in the Debt Capital Markets category recognised AFC’s pioneering JPY 75 billion Samurai Bond Guarantee to the Arab Republic of Egypt, showcasing commitment to innovative financial solutions that support member states’ access to international capital markets and contribute to infrastructure development. Egypt, which became a member state of AFC in 2021 and a shareholder last year, benefited from the landmark bond issuance backed by Sumitomo Mitsui Banking Corporation, with AFC providing a full re-guarantee and SMBC Nikko acting as the Sole Lead Arranger.

The “Best Supranational Syndicated Loan” award celebrates AFC’s success in securing a S$625 million syndicated loan last year, welcoming new lenders from the Middle East and Asia. Initially planned at US$500 million, the transaction was upsized due to a remarkable oversubscription of 62%, reflecting strong investor demand for AFC’s credit. The award affirms AFC’s leadership in structuring and executing complex financial transactions that foster sustainable development across regions.

“These awards are a very welcome validation of AFC’s strong market access, the strength of our credit profile, and our well-established investor engagement program,” said Banji Fehintola, Senior Director of Treasury & Financial Institutions of AFC. “AFC will continue to play a central role in mobilising the capital urgently needed for critical infrastructure to drive industrialisation, transform economies and improve livelihoods in Africa.”

Now in its 16th edition, the EMEA Achievement Awards celebrate exceptional achievements by the banking and finance sectors across Europe, the Middle East, and Africa (EMEA). Award winners chosen by the EMEA Finance editorial team exemplify diligent and innovative work taking place across the EMEA region and driving capital market transactions.

The EMEA Finance Achievement Awards adds to a series of accolades for AFC’s Treasury & Funding teams this year, including “Sovereign, Supra & Agency Treasury & Funding Team of the Year” at the 2024 Bonds, Loans & ESG Capital Markets Africa Awards. The JPY 75 billion Samurai Bond Guarantee to Egypt also earned AFC the “Innovation of the Year (MENA)” award recently at the IJGlobal Awards Gala.

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Business

Rising Loan Repayments, Capital Reversals Drive CBN FX Outflows By $1.2bn

Published

23 hours ago

May 12, 2025

The Gleamer

…Surge reflects growing external debt service burden

By Charles Cyril

Capital outflows from Nigeria rose significantly in January 2025, reaching $1.20bn, up from $1.06bn recorded in December 2024.

The increase represents a sustained pressure on the country’s external sector, driven primarily by surging external loan repayments and a notable uptick in capital reversals.
According to the January data, the sharp rise in outflows was largely due to a 27.45% increase in loan repayments, which amounted to $0.65bn during the month.

This surge reflects a growing external debt service burden, as the country continues to meet its obligations amidst tighter global financial conditions, elevated interest rates, and a strong US dollar.

Analysts suggest that these repayments are likely linked to maturing debt instruments and syndicated loans, which were contracted in previous years when global liquidity was more accommodative.

Funds previously invested in the country that are now being pulled out by investors also contributed significantly to the overall outflow.

These reversals rose by 3.85% in January to $0.54bn. The increase in capital reversals, according to findings, may be attributed to heightened investor caution, stemming from macroeconomic uncertainties, policy inconsistencies, and concerns over currency stability.
Some foreign portfolio investors may have opted to exit local markets due to perceived risks or in search of more attractive yields in other emerging or developed markets.

Interestingly, the repatriation of dividends the transfer of profits by foreign-owned companies to their parent firms declined sharply during the period.

According to the CBN data, the value of dividend repatriation fell by 66.67% to just $0.01bn. This sharp drop could be indicative of companies deferring profit remittances amid volatility in foreign exchange markets or regulatory measures aimed at easing pressure on external reserves.

In terms of proportional contribution to the total outflow, loan repayments constituted the largest share at 54.33%.

Capital reversals followed closely, accounting for 44.81%, while repatriated dividends made up a mere 0.85%.

Other forms of capital outflows, including payments for technical services, royalties, and management fees, accounted for the remaining portion.

The rise in capital outflows, particularly in the form of debt repayments, underscores the vulnerability of the country’s balance of payments to external shocks and rising debt obligations.

With international reserves under strain and external financing conditions still tight, policymakers face a delicate task of balancing debt service commitments with the need to support domestic economic growth and currency stability.

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