Afreximbank supports TTB’s acquisition of Union Bank with $300m facility

AFRICAN  Export-Import Bank (Afreximbank) has announced the disbursement of a $300 million Intra-African investment financing facility to Titan Trust Bank (TTB) to support its acquisition of a majority stake in Union Bank Nigeria Plc (UBN).

The deal is expected to enhance the competitive dynamics of the Nigerian banking sector, while maintaining confidence in the country’s financial services and broader financial stability.

Afrexim said the disbursed financial facility would complement the funds required for the proposed acquisition.

Afreximbank’s financial support enabled TTB to secure the acquisition of UBN, a well-capitalised bank with an extensive network, to aid the entity to better serve vital economic activities of the public sector, companies, and small and medium-sized enterprises.


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THE ICIR had reported that the acquisition process, which began last year, would give TTB up to a controlling 89.39 per cent equity stake in the first generation bank.

The ICIR report also stated that on May 31, 2022, the process of acquisition had been finalized.

TTB, 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  –  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 further assured of its continuous support to the newly merged entity in trade finance to promote intra- and extra-African trade.

This, it said, would be done through its broad range of programmes and initiatives, including the Afreximbank Trade Facilitation Programmes (AfTRAF) and AfPAY, its international payment services.

Afreximbank noted that the development impact of the acquisition was immense as TTB would leverage the merged entity to provide financing of about $3 billion over the medium term, of which over $600 million will directly support intra-regional trade finance.

Commenting on the transaction today, the president and chairman of the board of directors of Afreximbank, Benedict Oramah, 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,” Oramah said.

    The managing director and chief executive officer of TTB, Mudassir Amray, lauded Afreximbank for its “exceptional” support throughout the transaction.

    Amray also commended Afreximbank team for its “professionalism and dedication”, which he said led to the successful completion of the landmark transaction in a record time.

    He added, “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.”

    Harrison Edeh is a journalist with the International Centre for Investigative Reporting, always determined to drive advocacy for good governance through holding public officials and businesses accountable.

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