The African Export-Import Bank (AfreximBank) on Thursday announced a total of $500m new equity investment by its existing Shareholders.
This existing shareholder which also include the Federal Republic of Nigeria and the Arab Bank for Economic Development in Africa invested $200m through Class A, B and C shares and $300 million in callable capital, bringing the total value of new shares issued by the Bank in 2019 to $500 million.
It added that majority of the proceeds of the capital raise was used by the Bank to retire warrants that were issued in December 2018.
$500m Investment In Equity
In the statement, the new equity puts the bank in a strong position to continue it growth in line with its strategic plan. Particularly, the investment is important in the wake of the launched African Continental Free Trade Area; the largest free trade area created worldwide since the formation of the World Trade Organization.
According to Prof. Benedict Oramah, President of Afreximbank, “the equity injection reflects the confidence which our existing shareholders have in the Bank. We welcome their decision to rapidly take up additional equity”.
He continued “We are well positioned to take advantage of our relationships with our member states to provide a platform for trade and investment flows across the continent. This will help in delivering returns for the bank and growth for African businesses.”
Also, as stated, the bank will continue to monitor market conditions in order to find the appropriate window to re-launch its initial public offering in London.
The African Export-Import Bank (Afreximbank) is the pan-African multilateral trade financial institution. It is devoted to financing and promoting intra- and extra-trade in Africa. It was established in October 1993 by African governments, African private and institutional investors, and non-African investors. It’s headquartered in Cairo, Egypt
AfreximBank is an international organisation which has approved more than $167 billion in credit facilities for African businesses, including $7.2 billion in 2018. It had total assets of $13.4 billion as at 31 December 2018 and is rated A-(GCR), Baa1 (Moody’s) and BBB- (Fitch). Basically, its vision is to be the trade finance bank for Africa.
This recent development will continue to help AfrixemBank to fulfill its role of expansion for African trade.