Afreximbank leaned on Asian capital markets to keep lending on track after severing ties with ratings agency Fitch earlier this year.
While the lender has previously accessed Asian capital markets, last year’s $800 million fundraising from Japan and China — via Samurai and Panda bond issuances — has taken a greater strategic weight.
The bank, in a statement, cited its ability to raise the money as evidence that its credit profile is not in jeopardy, “contrary to concerns raised by some rating agencies.” Fitch downgraded Afreximbank last year over worries around the lender’s risk management policies, sparking a debate about the way Western ratings agencies perceive risk in Africa. In reaction, Afreximbank in January formally ended its relationship with one of the Big Three rating agencies, arguing that rating methodologies applied to states and multilateral institutions fail to reflect development mandates.
The lender’s comments in its latest earnings report comes amid a broader dispute between African lenders and Western credit rating agencies over how African risk is assessed and priced. In November last year, South Africa’s G20 Africa Expert Panel demanded a full disclosure of ratings data and methodologies.