AFC income hits $113.9m

27 March 2015, Lagos – The Africa Finance Corporation (AFC) on Thursday released its results for the year ended December 31, 2014 and reported a 31 per cent growth in its total comprehensive income from $87.3 million to $113.9 million.

Naira noes and dollar bills

Naira noes and dollar bills

A statement from the corporation explained that overall, it recorded a 27 per cent growth in balance sheet size from $1.9 billion in 2013 to US$ 2.4 billion in 2014. The corporation’s underlying revenue and balance sheet growth was driven by an increase in the total value of investments made, fee income and cost containment, with over $1.1 billion in potential investments in projects appraised, and US$ 850 million in asset creation delivered.

It noted that its operations was reinforced with the corporation’s first International credit rating from Moody’s Investors Service (Moody’s), with an A3 (long term)/P2 (short term) foreign currency debt rating, making AFC the third highest investment grade rated multilateral finance institution on the African continent.

“Total comprehensive income was the highest since inception in 2008, reflecting strong results in project development, specifically the financial close of the Cenpower project; the 350MW Kpone independent power plant under construction in Tema, Republic of Ghana, which will become the largest power plant in Ghana, accounting for approximately 10 per cent of Ghana’s installed capacity.

“Access to power is one of the most pressing challenges to sustainable economic growth in Africa.  During 2014, AFC also met its commitments as part of the US Presidential Power Africa initiative, having invested in excess of $250 million from its balance sheet and mobilised a further US $1 billion for investments in the sector since the beginning of the initiative in 2013.

“During the year, the Corporation’s borrowings crossed the $1.0 billion mark for the first time.  The Corporation maintained strong capital adequacy ratios and good liquidity.  At the 2014 Annual General Meeting, shareholders approved the 2014 dividend of 5.23 cents per share,” it added.

Commenting on the results, the Chief Executive Officer of AFC, Andrew Alli, said: “We are delighted with our performance during a year characterised by mixed global economic and financial conditions.  The depth and breadth of our infrastructure investments, and our rigorous management of expenses and capital, have produced an excellent return for our shareholders, positioning AFC to take a leading role in continuing to bridge Africa’s infrastructure divide.”

– This Day

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