Afreximbank has disbursed $300 million intra-African Investment Financing Facility to Titan Trust Bank (TTB) to support its acquisition of a majority stake in Union Bank of Nigeria (UBN) plc.
Afreximbank’s media contact, Amadou Sall, made this known in a statement from the pan-African bank, yesterday.
Sall said the deal would enhance the competitive dynamics of the Nigerian banking sector while maintaining confidence in the country’s financial services and broader financial stability.
He said the recently disbursed facility would 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.’’
Sall said TTB is 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.
He said TTB would leverage the acquisition of UBN to enhance its capacity to capitalise on the unparalleled opportunities presented by the African Continental Free Trade Area (AfCFTA).
Sall said Afreximbank would continue to support the newly merged entity in trade finance to promote intra- and extra-African trade through its broad range of programmes and initiatives.
He listed the programmes and initiatives to include 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 three billion dollars over the medium term of which over 600 million dollars will directly support intra-regional trade finance.’’
Afreximbank president, Benedict Oramah, said the “the bank remained committed to strengthening the position of indigenous financial institutions’’.
Oramah said this would, therefore, increase Africa’s control over its financial markets and create 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 and attract additional capital investments.
“It would also support the financial inclusion of small-scale enterprises, women-led businesses, youth enterprises and start-ups which are critical to the successful implementation of the AfCFTA’’.
Afreximbank is a Pan-African multilateral financial institution mandated to finance and promotes 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 industrialisation and intra-regional trade, thereby, boosting economic expansion in Africa.
TTB is the newest national commercial bank in Nigeria.
It commenced operation in October 2019, with a strong capital base and has demonstrated precision in the execution of its strategy by showing tremendous growth, even in difficult times.
TTB has received industry-wide recognition, having been named ‘Best Trade Finance Provider in Nigeria’ for 2020 and 2021 by Global Finance Magazine.
The bank also won ‘Best New Commercial Banking Brand’ and ‘Fastest Growing Digital Banking Brand in Nigeria’ for 2021 by the Global Brand Magazine