African Export Import Bank (Afreximbank) has announced the disbursement of a US$300 million Intra-African Investment Financing Facility to Titan Trust Bank (TTB) to support its acquisition of a majority stake in Union Bank Plc, Nigeria (UBN). The deal will enhance the competitive dynamics of the Nigerian banking sector, while maintaining confidence in the country’s financial services and broader financial stability.
The recently disbursed financing will complement the funds required for the proposed acquisition. Afreximbank’s financial support enables TTB to secure the acquisition of a well-capitalised bank with an extensive network, enabling the entity to better serve vital economic activities of the public sector, companies, and small and medium-sized enterprises.
A member of the Tropical General Investment (TGI) Group – a pan-African group with diversified investments across seven African countries in various industries and a large network of origination, distribution, and supply chain hubs, TTB will leverage the acquisition of UBN to enhance its capacity to capitalize on the unparalleled opportunities presented by the African Continental Free Trade Area (AfCFTA).
Afreximbank will continue to support the new merged entity in trade finance to promote intra- and extra-African trade through its broad range of programmes and initiatives, including the Afreximbank Trade Facilitation Programmes (AfTRAF) and AfPAY, the Bank’s international payment services. The development impact of the acquisition is immense as TTB will leverage the merged entity to provide financing of about US$3 billion over the medium term of which over US$600 million will directly support intra-regional trade finance.
Commenting on the transaction, Professor Benedict Oramah, President and Chairman of the Board of Directors of Afreximbank, emphasised the Bank’s commitment to strengthening the position of indigenous financial institutions, thereby increasing Africa’s control over its own financial markets and creating greater economic resilience for the continent.
“As international capital retreats from Africa, we must redouble our efforts to build an effective and resilient financial services sector on the continent, committed to intra-African trade and investments and the development of regional value chains. Afreximbank is confident that the transaction will engender confidence in the Nigerian financial system, attract additional capital investments and support the financial inclusion of small-scale enterprises, women-led businesses, youth enterprises and start-ups who are critical to the successful implementation of the AfCFTA.”
Mr Mudassir Amray, Managing Director and CEO of Titan Trust Bank, thanked Afreximbank for the exceptional support throughout the transaction. He further commended the Afreximbank team for its professionalism and dedication which led to the successful completion of this landmark transaction in a record time. He added that “Afreximbank is one of a handful of organisations that remain bullish in Africa in this period of global uncertainty. The new merged entity will continue to work with Afreximbank to support businesses to promote intra- African trade.”
African Export-Import Bank (Afreximbank) is a Pan-African multilateral financial institution mandated to finance and promote intra-and extra-African trade. Afreximbank deploys innovative structures to deliver financing solutions that support the transformation of the structure of Africa’s trade, accelerating industrialization and intra-regional trade, thereby boosting economic expansion in Africa. A stalwart supporter of the African Continental Free Trade Agreement (AfCFTA), Afreximbank has launched a Pan-African Payment and Settlement System (PAPSS) that was adopted by the African Union (AU) as the payment and settlement platform to underpin the implementation of the AfCFTA. Afreximbank is working with the AU and the AfCFTA Secretariat to develop an Adjustment Facility to support countries in effectively participating in the AfCFTA. At the end of 2021, the Bank’s total assets and guarantees stood at about US$25 billion, and its shareholder funds amounted to US$4 billion. Afreximbank disbursed more than US$51 billion between 2016 and 2021. The Bank has ratings assigned by GCR (international scale) (A-), Moody’s (Baa1), Japan Credit Rating Agency (JCR) (A-) and Fitch (BBB). The Bank is headquartered in Cairo, Egypt.
About Titan Trust Bank
Titan Trust Bank is the newest national commercial bank in Nigeria. It commenced operation in Oct 2019 with a strong capital base and has demonstrated precision in execution of its strategy by showing tremendous growth, even in difficult times.
Titan Trust Bank has received industry-wide recognition, having been named ‘Best Trade Finance Provider in Nigeria’ for 2022 by Global Finance (for the second year running) and ‘Best New Commercial Banking Brand’ and ‘Fastest Growing Digital Banking Brand’ for 2021 by the Global Brand.
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