Banking
Fitch Affirms Afreximbank at ‘BBB-‘ With Stable Outlook
By Adedapo Adesanya
A leading credit rating agency, Fitch Ratings, has affirmed African Export-Import Bank’s (Afreximbank) Long-Term Issuer Default Rating (IDR) at ‘BBB-‘ with Stable Outlook. Fitch also affirmed the bank’s Short-Term Issuer Default Rating (IDR) at ‘F3’ and senior unsecured debt at ‘BBB-‘.
In a report, the agency noted that the Afreximbank’s ‘BBB-‘ rating was driven by the bank’s intrinsic features, including solvency and liquidity, both assessed at ‘a-‘.
Despite the pressure on asset quality resulting from the COVID-19 crisis, the ongoing and expected capital increases support the resilience of the bank’s solvency.
Afreximbank’s solvency assessment of ‘a-‘ reflects its ‘strong’ capitalisation and ‘moderate’ risk profile, a statement from the agency said.
The ‘strong’ capitalisation is underpinned by the equity to assets and guarantees ratio, at 18.1 per cent in 2019, close to 2018 level (18.5 per cent) as the bank’s expansion has been broadly matched by paid-in capital payments from the ongoing $1 billion capital increase (targeted to be completed by end-2021, 91 per cent of which had been raised by the first half of this year) and internal capital generation.
Fitch’s usable capital to risk-weighted assets (FRA) was 21 per cent in 2019 (from 20% in 2018), consistent with a ‘moderate’ assessment (15-25 per cent).
The agency said it expects the equity-to-assets and FRA ratios to decline in the coming years as the impact of the COVID-19 crisis on asset quality affects internal capital generation and the bank accelerates loan disbursement in the short-term in response to the crisis. Fitch expects the growth in loans to average close to 20 per cent in 2020-2022.
However, it expects that the bank’s capitalisation metrics should remain consistent with a ‘strong’ assessment by the end of 2022. This assumes continuing payments under the $1 billion capital increase and the start of payments under a new $500 million capital increase, approved in June this year.
The Bureau of African Union Heads of States and Governments recently endorsed a significant increase to the bank’s subscribed capital. Fitch understands that the final approval of this capital increase could take place at the bank’s Annual General Meeting (AGM) in 2021, and the first paid-in capital payments would start shortly thereafter. In Fitch’s view, this capital increase would support the resilience of the bank’s solvency, despite the negative impact of the COVID-19 crisis on asset quality.
Fitch assesses Afreximbank’s overall exposure to risks as ‘moderate’, balancing its ‘high’ credit risk profile and ‘moderate’ risk management policies against its ‘low’ concentration risk and ‘very low’ equity and market risks.
The agency expects the average rating of the bank’s loan portfolio before accounting for credit risk mitigants to decline to ‘CCC’ over the medium term from ‘B-‘ as of end-2019.
Afreximbank’s business environment is deemed ‘high risk’, primarily reflecting its strategy, characterised by the rapid growth of its banking operations in high-risk countries.
Fitch assesses Afreximbank’s support rating at ‘bb’, unchanged from the previous review. The average rating of key shareholders fell to ‘BB-‘ following the change in the bank’s shareholder base and the recent downgrade of Nigeria, the largest shareholder.
The bank’s callable capital is partially supported by medium-term credit risk mitigants, which provides a one-notch uplift over the bank’s shareholders’ average credit quality, leading to ‘bb’ support capacity.
Fitch has revised the bank’s shareholders’ propensity to support to ‘strong’ from ‘moderate’ previously. This reflects regular inflows of fresh capital and the recent endorsement for a significant increase to the bank’s subscribed capital. The strong propensity results in a support assessment of ‘bb’.
By Modupe Gbadeyanka
In recognition of its strategic leadership in advancing the growth and resilience of small and medium-sized enterprises (SMEs), Union Bank of Nigeria Plc has been honoured by the Association of Small Business Owners of Nigeria (ASBON).
The lender was rewarded by the group for its suite of solutions designed to enable business expansion and long-term value creation.
At the Nigeria National SME Business Awards, held recently in Lagos, Union Bank was given the Best SME Growth Banking Initiatives Award for 2025.
The ceremony was organised by ASBON in partnership with the Lagos State government through the Ministry of Commerce, Cooperatives, Trade and Investment.
The event convened stakeholders from the public and private sectors to recognise individuals and organisations driving meaningful impact across Nigeria’s SME ecosystem.
Receiving the award on behalf of the bank, its Head of SME Segment, Mr Ayokunnumi Abraham, described the recognition as a strong endorsement of the organisation’s commitment to supporting small and medium-sized businesses.
“We are honoured to receive this recognition, which reflects Union Bank’s continued commitment to helping SMEs grow by making banking simpler, faster, and more accessible.
“Through enhancements to our specialised platforms such as Union360, we have meaningfully reduced the time it takes for businesses to come on board and begin transacting.
“These improvements have shortened onboarding, increased digital adoption among our SME customers, and supported the acquisition of new business clients. Our focus remains on delivering practical solutions that help Nigerian businesses thrive,” he stated.
By Modupe Gbadeyanka
The stellar contributions of Polaris Bank Limited to youth employment, talent development, and workforce empowerment across Nigeria have not gone unnoticed, as the company was recently recognised at an event in Lagos.
At the 2026 Jobberman Partners’ Convening, the financial institution was bestowed with the Private Sector Champion Award.
The award recognises private sector organisations that have demonstrated exceptional commitment and leadership in advancing youth employability through impactful recruitment initiatives, graduate trainee programmes, executive hiring support, candidate assessment programmes, and strategic partnerships that create sustainable career opportunities for young Nigerians.
Themed From Impact to Action: Collectively Designing the Future of Youth Employment in Nigeria, the convening focused on fostering collaboration between the private sector and other stakeholders to expand access to meaningful employment opportunities and equip young Nigerians with the skills and opportunities required to succeed in an evolving economy.
On the recognition, Jobberman commended Polaris Bank for consistently going beyond transactional partnerships to deliver measurable impact within Nigeria’s employment ecosystem. The renowned recruitment firm described Polaris Bank as a credible and purpose-driven institution committed to advancing youth employability and supporting the future of work in Nigeria.
The Head of Talent Management at Polaris Bank, Ms Cynthia Sanyaolu, reaffirmed the lender’s commitment to empowering young Nigerians and strengthening the nation’s workforce through strategic people-focused initiatives designed to create long-term economic and social impact.
“This recognition reflects Polaris Bank’s unwavering belief in the potential of the Nigerian youths and our commitment to building platforms that enable them to thrive professionally and economically.
“At Polaris Bank, we see talent development and youth empowerment as critical drivers of national growth and sustainable development,” she stated.
Over the years, Polaris Bank has continued to invest in initiatives that promote learning, career growth, workforce inclusion, and economic empowerment.
Through strategic Graduate Trainee recruitment programmes via its flagship Polaris Graduate Intensive Training (PGIT) and Polaris Tech Ignite Training (TechIGNITE), among other talent development initiatives, and collaborative partnerships, the bank remains committed to supporting the next generation of Nigerian professionals while contributing to national development.
By Aduragbemi Omiyale
Plans are underway by Ecobank Transnational Incorporated (ETI) to approach the international debt market for a capital raise.
The parent company of the Ecobank Group intends to use proceeds from the proposed exercise to refinance “the concurrent any-and-all tender offer of the ETI $350 million 8.750 per cent tier 2 notes due June 2031.”
However, the issuance of the notes is subject to prevailing market conditions and the conclusion of the necessary transaction documentation, a statement signed by the organisation’s chief financial officer, Mr Ayo Adepoju, stressed.
After issuance, the debt instrument may be listed on the London Stock Exchange, with the expectation that the bonds will be traded on its regulated market.
Ecobank noted that it would allocate an amount equivalent to the full net proceeds of the issue of the notes to finance or refinance, in part or in full, new and/or existing eligible assets as described in its Green Bond Framework (Ecobank-Sustainability), as amended and supplemented from time to time.
Ecobank, which has banking operations in 34 countries in Africa, is listed on the Nigerian Exchange (NGX) Limited, the Ghana Stock Exchange and the Bourse Régionale des Valeurs Mobilières (Stock Exchanges).
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