AFC grows balance sheet to $2.4 billion
Africa Finance Corporation (AFC), the leading African investment grade rated multilateral development finance institution, has announced a 31 per cent growth in total comprehensive income from $87.3 million to $113.9 million in its operations last year.
Overall, there was a 27 per cent growth in balance sheet size from $1.9 billion in 2013 to $2.4 billion in 2014.
The corporation’s underlying revenue and balance sheet growth, according to the financial year’s report, 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 $850 million in asset creation delivered.
AFC’s international recognition as a leading African-led multilateral finance institution 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 it 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 was assessed as one of the most pressing challenges to sustainable economic growth in Africa.
During 2014, AFC also met its commitments as part of the U.S. Presidential Power Africa initiative, having invested in excess of $250 million from its balance sheet and mobilised a further $1 billion for investments in the sector since the beginning of the initiative in 2013.
During the year, the AFC’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 yearly general meeting, shareholders approved the 2014 dividend of 5.23 cents per share.
Commenting on the 2014 results, , President and Chief Executive Officer of AFC, Andrew Alli said: “We are delighted with our performance during a year characterized 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.”
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