afcapital.partners

What It Is

AF Capital was founded in 2017 and is a sister brand of aviation finance institution AirFinance. It focuses on export credit financing outside the aviation sector, using government guarantees from export credit agencies (ECAs) in various countries to provide large-scale funding support for global buyers and exporters. It is particularly experienced in operating in emerging markets where traditional banks are reluctant to lend.

Core Dimensions

• Service Type: Primarily provides ECA-backed export credit financing, while also covering working capital, supply chain, and infrastructure financing.
• Countries/Regions Covered: Operates across five continents, with typical cases in financing-challenged markets such as Kenya, Nigeria, Mexico, and Turkey.
• Compliance and Licensing: Holds “Delegated Authority Lender” and “Qualified Advisor” status with the Export-Import Bank of the United States (EXIM), and maintains close cooperation with UK Export Finance (UKEF), Export Development Canada (EDC), and others.
• Risk Management: Uses a dual risk-control approach: it conducts strict KYC and due diligence, requiring detailed materials such as three years of audited financial statements, while also relying on the ECA as the final credit committee for approval, using government guarantees to mitigate default risk.

Pricing

Interest rates are based on the risk profile of the ECA’s country and are usually significantly lower than commercial loans. In addition, the ECA charges a risk fee, which depends on the tenor, credit profile, and destination country; this fee can be rolled into the loan and repaid in installments. In terms of minimum requirements, the purchase contract must exceed USD 1.5 million.

Pros and Cons

Pros: Government guarantees enable lower interest rates; does not consume the company’s existing bank credit lines; can provide support in regions where banks refuse to lend; strong relationships with global ECAs help make the process more efficient.
Cons: Limited to newly manufactured export goods and has a high threshold (>USD 1.5 million); the approval process is rigorous and lengthy, involving five stages: agreement, due diligence, application, documentation, and disbursement; not suitable for small-value or routine payments.

Who It’s For

Best suited for multinational export manufacturers with contracts over USD 1.5 million, as well as global buyers needing to purchase large-scale equipment such as pipelines, servers, or infrastructure materials. It is especially relevant for companies located in emerging markets or those that have difficulty obtaining commercial loans.

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