The Emerging Africa Infrastructure Fund (EAIF) has received a foreign currency long-term issuer rating of ‘A2’ with a stable from ratings agency Moody’s.

Obligations rated A2 are considered upper-medium grade and are subject to low credit risk.

Moody’s confirms that the fund has a strong capital position, which reflects moderate but rising leverage and a diversified lending portfolio notwithstanding weak asset credit quality. 

The EAIF also enjoys a solid level of member support from a base of highly-rated shareholders, reflecting the fund’s strategic position in the broader Private Infrastructure Development Group.

The fund’s unique blended finance model is backed by leading development finance institutions and institutional lenders, which Moody’s considered favourable in its rating of the fund.

The EAIF has since 2001 been mobilising public and private debt capital to deliver transformative infrastructure projects in sub-Saharan Africa. By December last year, the EAIF had closed 90 projects for $2.1-billion worth of investment, and mobilised private sector investment commitments of $15.2-billion.

The fund says the Moody’s rating reaffirms its position as an attractive vehicle for investors seeking exposure to the burgeoning African infrastructure asset class, with strong health, safety, environment and security performance, a proven ability to generate sustainable development impact, and a significant downside mitigation thanks to strong anchor support from European governments.

Fund manager Ninety One director Martijn Proos remarks that the A2 rating evidences the EAIF’s ability to take on and proactively manage risk to deliver returns and generate sustainable development impact.

“We are committed to building our diversified portfolio as we ramp up vital funding for strategic projects that boost Africa’s resilience. This rating will assist us to further diversify the types and sources of funding we can access as we build our business in the years to come,” he adds.

The EAIF’s committed loan portfolio sits at $1.15-billion at the moment, with projects spread across 17 African countries and nine infrastructure sectors – including digital communications, energy generation, bulk storage and logistics, agribusiness and mining.