Africa Finance Corporation Posts 25% Profit Growth With Assets of $3.2billion

Africa Finance Corporation, AFC, on Tuesday, April 5, in Lagos announced its 2015 fiscal year results, achieving 25 per cent growth in its balance sheet with total assets in excess of $3.2 billion.

According to the results, AFC’s net interest income increased by 39 per cent to $108.4 million with net interest margins growing to 4.4per cent, a seven per cent improvement over the prior year, as the Corporation continues to lower its borrowing costs.

Fees, commissions and other income however declined by 85 per cent largely due to one-off revenues of $46 million recorded in 2014.

In April 2015, as part of its efforts to diversify its funding base, AFC successfully issued its maiden eurobond of $750 million as part of its established $3 billion Eurobond Global Medium Term Notes (“GMTN”) Programme. Reception of the bond was strong, and it was six times over-subscribed, positioning AFC in the capital markets as a strong African credit.

Andrew Alli, President & CEO of AFC said: “We are pleased to report that despite the economic headwinds we have seen our total assets grow by 25per cent. Support for the AFC and its mandate as an investor in crucial infrastructure across Africa has also been met with the launch of our US$750 million Eurobond, which was six times oversubscribed.

“As global economic uncertainty persists, the AFC is well placed to continue to deliver returns to shareholders and new infrastructure that will bolster economic growth and have real social impact across Africa,” Alli said.