AfreximBank asset base up 5,5 percent to US$20bn
THE African Export-Import Bank (AfreximBank) has grown its asset base by 5,5 percent to US$20,37 billion with a solid performance for the six months period to 30 June 2021. During the period under review the financial institution recorded a net income of US$168,9 million compared to US$150,75 million last year. The increase was largely due to growth in interest income and a 13 percent decrease in interest expense arising from a cost-effective funding mix.
“The results were achieved largely due to the growth in interest income and a 13 percent decrease in
interest expense arising from a cost-effective funding mix.
“AfreximBank’s total assets grew by 5,5 percent to US$20,37 billion as at 30 June 2021 from $19,31 billion as at 31 December 2020,” it said.
“This was driven predominantly by increases in loans and advances and cash and cash equivalents.” The bank’s shareholders’ funds increased by 5,1 percent to US$3,54 billion from the position at 31 December 2020 of US$3,37 billion, reflecting support from existing shareholders and a strong internal capital generation capacity.
AfreximBank executive vice president in charge of finance, administration and banking services, Mr Denys Denya, was quoted as saying: “The first six months of the year witnessed some positive momentum as the African economy has rebounded from the challenges faced in the previous year. “Notwithstanding the continued Covid-19 challenges, we are delighted to have posted year-on-year growth of 12 percent in profitability and closed the period in a strong financial position.”
AfreximBank said it continues to play an important role in leading the fight against Covid-19 in Africa.
“Having disbursed over US$6,5 billion through the Pandemic Trade Impact Mitigation Facility (PATIMFA), the bank is also supporting the procurement and deployment of 400 million vaccine doses to the African Union (AU) member States through the African Vaccine Acquisition Trust (AVAT), of which we are one of the principal partners,” said Mr Denya.
“The acquisition of the vaccines by AVAT was made possible through a US$2 billion guarantee facility provided by the bank.
“The bank also acted as the financial and transaction advisor, guarantor, instalment payment facility provider and payment agent on this facility.”
To enable and strengthen AfreximBank’s growth ambitions, shareholders’ approval was received to enable the bank to launch a US$2,6 billion paid-in equity capital raise, expected to be fully implemented by December 31,2023.
In addition, AfreximBank successfully closed a US$1,3 billion dual maturity bond issuance, in the second quarter, which is the institution’s longest maturity and largest ever transaction in the debt capital markets.
“We are confident that Afreximbank’s solid financial position and growth trajectory, provide a strong foundation for us to support the continent sustain its economic rebound in the second half of 2021,” he said.
AfreximBank is a Pan-African multilateral financial institution mandated to finance and promote intra-and extra-African trade.
The institution deploys innovative structures to deliver financing solutions that support the transformation of the structure of Africa’s trade, accelerating industrialisation and intra-regional trade, thereby boosting economic expansion in Africa.
As a supporter of the African Continental Free Trade Agreement (AfCFTA), AfreximBank has completed the development of a Pan-African Payment and Settlement System (PAPSS) that was adopted by the AU as the payment and settlement platform to underpin the implementation of the AfCFTA.
The bank is working with the AU and the AfCFTA secretariat to develop an adjustment facility to supportcountries in effectively participating in the AfCFTA. – chronicle.cl.zw
