The 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.
The assessment of the bank’s transactions recognised the institution’s leadership role in mobilising 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, according to a statement.
As Covid-19 caused a sudden retreat of capital and investors from the continent, Afreximbank stated that it undertook decisive action and mobilised 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 said it played a leading and enabling role in nearly all the landmark deals across Africa during 2020, mobilising 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,” the statement added.
Afreximbank explained that its pivotal role in the African syndicated loans market was also reflected in its third place ranking in the Administrative Agent category – a position reflecting significant progress since 2019, when the Bank was placed eighth.