AFC launches new Bermuda Subsidiary to manage infrastructure risk

Africa Finance Corporation (AFC), the continent’s leading infrastructure solutions provider, has established a wholly owned Bermudian subsidiary, AFC Captive Insurance Company Ltd (AFC Captive), to strengthen its risk management capabilities and support the continued growth of its infrastructure financing activities across Africa.

Backed by up to US$30 million in equity capital, AFC Captive will initially provide insurance coverage for loans extended by AFC to its counterparties.

The move is designed to help the Corporation manage and retain risk more efficiently while gradually reducing its reliance on external commercial insurance markets.

Licensed as a class 2 insurer, the new entity will also have the flexibility to extend insurance capacity to AFC affiliates and selected third parties, with up to 20% of its underwriting capacity available for such business.

The establishment of AFC Captive builds on the Corporation’s strong investment-grade credit profile. AFC holds an A3 long-term issuer rating from Moody’s, among the highest investment-grade ratings of any African institution.

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In January 2026, S&P Global assigned AFC an ‘A’ long-term and ‘A-1’ short-term issuer credit rating with a Positive Outlook — the highest rating the Corporation has received from a major global ratings agency to date. AFC has also recently secured renewed AAA domestic issuer ratings with stable outlooks from China Chengxin International Credit Rating Co. Ltd (CCXI) and S&P Global (China) Ratings.

Leveraging this credit strength, AFC Captive aims to build its own investment-grade credit profile as it scales operations.

Beyond reinforcing AFC’s internal risk framework, the subsidiary is expected to deepen the Corporation’s insurance expertise and develop tailored risk-mitigation solutions for infrastructure investment across Africa. Over time, the business plans to expand its services to a broader range of third-party clients.

Samaila Zubairu, President and CEO of AFC, said the initiative reflects the need for innovative approaches to mobilise capital and extend financing capacity across the continent.
“AFC Captive is an important addition to our platform, enhancing our ability to manage risk, deploy capital more efficiently, and scale investment into the infrastructure and industrial projects that will drive long-term growth and economic transformation,” he said.

Wola Asase, Deputy Director and Head of Syndications at AFC, will manage the subsidiary as Head of AFC Captive and serve as a Director on its Board. “AFC Captive gives us greater flexibility in how we structure and support transactions across our portfolio,” Asase said.

“By using insurance more strategically, we can expand market capacity, improve capital efficiency and unlock financing for projects that may otherwise be constrained by limited or costly external insurance.”