KEY STRENGTHS OF THE BANK 1
Strong Capitalisation
Very strong Tier 1 capital Ratio of over 20%;
Callable capital of US$ 250 million is a strong buffer for unexpected risk events.
2
Highly Liquid Balance Sheet
Loan portfolio has an average tenor of 1 year.
Most of these loans are linked to actual export trades, with about 60% secured with collateral outside of the obligor’s country, domiciled mainly in OECD countries; and
The loan book and the funding are based on variable interest rates.
3
Good Asset Quality
Apart from a short average maturity, the portfolio is well diversified across financial institutions (who act as intermediaries) and corporate sectors;
Most of the loans are self liquidating short-term structured trade financings of which 87% are secured;
Documentation of most transactions is governed by English law; and End of 2011, the Bank’s Non-performing loans (NPL) were only 0.3% of Gross Loans.
4
Constant Access to International Capital Markets
Since 2000, Afreximbank has been able to tap the international loan market consistently, raising an aggregate amount of more than US$ 4 bn over the years.
In 2011, the three major credit rating agencies, that is, Fitch, Moody's and Standard and Poor's affirmed the Bank's long term ratings of BBB-, Baa2 and BBB- respectively. All ratings were assigned Stable Outlook.
In 2011, the Bank tapped the Syndicated Loan market, securing loans of an aggregate amount of US$ 307.5 million and € 119.25 million with more than 25 banks in Europe, Middle East, Africa and Asia.
In July 2011, the bank issued a benchmark size bond of US$500 million under its EMTN program.
5
Experienced Management
Afreximbank’s Board of Directors and Management are experienced international bankers with strong links to African Governments, central banks and commercial banks with sound market knowledge and integrity; and
This knowledge is used consistently to support member countries and to spearhead initiatives across Africa. Management has built a credible brand over the years.
6
Highly Efficient and Profitable Operations
The Bank operates on a low cost basis. Cost-Income Ratio of below 30% (28% in 2010 and 25% in 2011); and
Afreximbank generated Return on Equity (RoE) consistently above 10% and Return on Asset (RoAs) above 3% over the last three years.
7
Supranational/Preferred Creditor Status
33 AFREXIMBANK • THE TRADE FINANCE BANK FOR AFRICA
AFREXIMBANK • THE TRADE FINANCE BANK FOR AFRICA
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