AFC Grows Profit By 2,179%, Pays $304.4m Dividend In 10 Years

In what has been described as a superlative year, multilateral development finance institution, the Africa Finance Corporation (AFC), on Friday reported a net profit of $100.3m in 2017, from a total comprehensive income of $109.2m.
The 2017 profit, according to Andrew Alli, the outgoing President/Chief Executive of AFC, represents a 2,179.5% rise over a 10-year period from the humble $4.4m recorded in the 2007 financial year.

Other highlights of the financial report showed that the AFC grew net interest income by 21% to $142.7m; just as fees, commissions, dividend and other Income, up 36%; amidst an all-time low cost-to-income ratio of 19%.
Liquidity position for the year stood at $1.5bn; even as management grew total assets year-on-year by 21% to $4.2bn, while total equity stood at $1.5bn.

Commenting on the year’s performance, Alli added that within its first decade of operation, the AFC has besides the 20-fold profit growth, “paid aggregate dividends of US$304.4 million to its shareholders and elevated the Corporation to the second-best rated lending institution in Africa.
“With the balance sheet and track record in place to deliver the infrastructure financing that will help Africa to fulfil its potential, AFC is well placed for its next decade of growth, to the benefit for all its stakeholders,” he added.
Continuing, the AFC boss described the 2017 performance as robust “in the face of challenging conditions. Despite a year marked by fiscal challenges, fewer bankable projects, and a market-wide reduction in terms of investment, AFC delivered strong underlying results, as the above numbers show.

“Operationally, AFC also maintained its momentum, welcoming Kenya, Zambia and Benin as new member states, pioneering innovative funding instruments such as our oversubscribed Sukuk, and continuing to enable numerous successful infrastructure projects that will transform the economies we invest in.

“AFC marked its 10th anniversary in 2017, coinciding with my last year as President and CEO. I am proud to report that over the last decade, AFC has evolved from a start-up to a powerful force on the continent that is at the forefront of addressing Africa’s infrastructure deficit. We have demonstrated that Africa Infrastructure is a viable asset class and that investors can contribute to long- term sustainable growth of the continent in a way that generates strong returns.
In the year 2017, the number of AFC member-states increased by three to 18, after welcoming Kenya, Zambia, Benin, while Malawi joined in 2018.

Also, there were additional equity investors- one Sovereign Investor (Ghana) in 2017, with African Reinsurance Corporation becoming the first multilateral institution investor in January 2018.
Within the period, the corporation also inaugurated two ports built in record time by Gabon Special Economic Zone, an investee company. The mineral and general-purpose port, at invet will enable the diversification of the Gabonese economy.
It closed the Anergi transaction, a joint venture with Harith General Partners creating a power company with a 1,786MW gross energy generation capacity that will supply reliable energy to up to 30 million people in five countries.

This was besides leading an international consortium to invest US$205 million in Bel-Air bauxite mining in Guinea-Conakry, one of the largest foreign investments in the country since the 2014 Ebola crisis.
The corporation also became the first African multilateral finance institution to issue a Sukuk bond – the highest rated by an African supranational entity; just as it raised $500m in 7-year Eurobond that was five times oversubscribed.

Photo Caption: Andrew Alli, President/Chief Executive of African Finance Corporation; Emeka Emuwa, Chairman of General Meeting; Dr. Adesegun Akin-Olugbade, Chief Operating Officer & General Counsel, AFC at the 10th Annual General Meeting of the corporation on Friday, April 27, 2018 in Lagos, Nigeria.

https://investdata.com.ng/2018/05/afc-grows-profit-2179-pays-304-4m-dividend-10-years/