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The Africa Finance Corporation, a Lagos-based multilateral institution, said its total comprehensive income for 2015 declined by 38 percent year-on-year amidst a tough operating environment and a difficult year that was characterized by a decline in global commodity prices, particularly oil, minerals, and soft commodities.

AFC’s total comprehensive income fell to $70.3 million in 2015, compared to $113.9 million in the previous year, according to a statement released at the end of its annual general meeting on Tuesday.

The AFC, however, said it grew its total assets by 25 percent year-on-year, from $2.4 billion in 2014 to $3.2 billion in 2015. Net interest income also rose 39 percent year-on-year to $108.4 million in 2015.

“We are pleased to report that despite the economic headwinds we have seen our total assets grow by 25 percent,” said Andrew Alli, AFC’s President & CEO.  

“As global economic uncertainty persists, the AFC is well placed to continue to deliver returns to shareholders and new infrastructure that will bolster economic growth and have real social impact across Africa.”

In 2015, the AFC said none of its risk assets were impaired, but it recorded its first portfolio impairment charge of $26.7 million because of the default risks to its oil and gas asset portfolio.
Overall, the AFC said it remains strongly capitalized with a capital-adequacy ratio of 50 percent and liquidity of about $1 billion as at December 2015.

In the year under review, the AFC said it issued a maiden $750 million Eurobond as part of a $3 billion Eurobond Global Medium Term Notes Programme.

“Support for the AFC and its mandate as an investor in crucial infrastructure across Africa has also been met with the launch of our US$750 million Eurobond, which was six times oversubscribed,” Alli said.

Founded in 2007 with paid-in equity capital of $1.26 billion, the AFC has a mission to address Africa’s infrastructure development needs while seeking a competitive return on capital for its shareholders. AFC’s shareholders include various African financial institutions (47.6 percent), the Central Bank of Nigeria (42.5 percent), and several industrial and corporate shareholders (9.8 percent).

Current member-nations of the AFC include, Nigeria (host country), Guinea-Bissau, Sierra Leone, The Gambia, Liberia, Guinea, Ghana, Chad, Cape Verde, Gabon, and Cote d’Ivoire. Several prospective member-countries are now at different stages of due diligence.

Some major projects that have been financed by AFC include: Main One, a submarine communications company; Seven Energy, a Nigeria-based oil and gas company; Ethiopia Airlines, the flagship carrier of Ethiopia; the Kpone Independent Power Plant, a 350MW power plant in Accra, Ghana, among others.