Bloomberg’s 2020 full-year Capital Markets League Tables has ranked African Export-Import Bank Africa’s number one Mandated Lead Arranger in sub-Saharan Africa.
The bank made this known in a statement on Friday in Cairo.
According to the statement, the bank is delighted to have surpassed 2019’s second place MLA ranking and is determined to maintain the momentum into 2021.
It said: “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.
“Afreximbank’s pivotal role in the African syndicated loans market is also reflected in the third place ranking in the Administrative Agent category – a position reflecting significant progress since 2019, when the bank was placed eighth.”
The statement said the assessment of the bank’s transactions was in recognition of the institution’s leadership role in mobilising capital.
The bank mobilises capital from both within and outside the continent from a diverse range of investors and stakeholders for the financing needs of borrowers in Africa.
It said: “As COVID-19 caused a sudden retreat of capital and investors from the continent, Afreximbank undertook decisive action and mobilised its significant partnership-building expertise.
“It also fulfilled 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.”
According to the institution, its MLA activity has mitigated the current economic downturn for many borrowers by easing the rise of potential borrower defaults in sovereign, financial institution and corporate sectors.
It also contributed to general continued investor confidence in spite of economic adversity.
The bank’s President, Prof. Benedict Oramah, was quoted as saying he was delighted to see the bank’s important work in the African syndicated loans market recognised by Bloomberg.
Oramah said: “We are particularly pleased to be ranked number one in the MLA category, we are further encouraged by the dramatic improvement in the rating of the bank’s administrative agency work.
“As trading under the African Continental Free Trade Agreement (AfCFTA) begins to gather momentum, the bank expects to play a pivotal role, alongside other partner institutions.
“In financing intra-African trade and fostering the economic advancement of the continent and the growing prosperity of its people.”
The League Tables, which is published quarterly and annually, ranks banks and financial institutions in different categories.
The categories are arrangers, book runners, administrative agents and advisors across diverse transactions, which include loans, bonds and merger and acquisition activities.
The Bloomberg Sub-Sahara Africa League Tables exclude North-African transactions and, therefore, do not constitute a comprehensive assessment of Afreximbank’s extensive syndicated loan activities in that important region.
The bank, however, sees its activities in the areas outlined as complementary and supplementary to the operations of commercial banks in Africa.