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Haytham Elmaayergi, Executive Vice President, Global Trade Bank at Afreximbank. [Courtesy]
The African Export-Import Bank (Afreximbank) has secured a long-sought investment grade rating from S&P Global Ratings, a move that will lower its borrowing costs and expand its capacity to lend to African and Caribbean economies reeling from recent supply chain shocks.
S&P assigned the Cairo-based pan-African lender a ‘BBB+’ long-term and ‘A-2’ short-term issuer credit rating, both with a Stable Outlook, the bank announced on Monday.
The ‘BBB+’ rating – one notch above speculative grade – means Afreximbank is now considered low-risk by international investors. Investment grade status typically allows institutions to raise capital more cheaply in global bond markets, attract a wider pool of conservative funds such as pension and insurance portfolios, and issue larger loans at competitive rates.
