Adedapo Adesanya
By Adedapo Adesanya
The African Export-Import Bank (Afreximbank) has announced that existing shareholders, including the Federal Republic of Nigeria, have invested $500 million in new equity ranging from shares and callable capital to put the bank in a solid position.
The bank in a statement released on Thursday said that the shareholders and the Arab Bank for Economic Development in Africa invested $200 million in 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 was also stated that the majority of the proceeds of the capital raise were used to retire warrants that were issued in December 2018.
“The new equity also puts the bank in a strong position to continue its growth in line with its strategic plan, particularly in the wake of the recently launched African Continental Free Trade Area (AfCTFA), the largest free trade area created worldwide since the formation of the World Trade Organization,” the statement stated.
Afreximbank also disclosed that it would continue to monitor market conditions to find the appropriate window to re-launch its initial public offering in London.
According to the President of Afreximbank, Mr Benedict Oramah, “The equity injection reflects the confidence which our existing shareholders have in the bank and the bank welcomes their decision to rapidly take up additional equity.
“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, delivering returns for the bank and growth for African businesses.” He said.
Earlier in the week, the bank pledged $500 million for the production and trade of African cultural and creative products over the next two years. The funds would be available for creatives as loans to banks, direct financing to operators and as guarantee in recent times as a significant sector for its meaningful contribution to Africa’s Gross Domestic Product (GDP).
Earlier this year, the bank struck a deal with Imo State under the now-ousted governor—Emeka Ihedioha to site the Africa Quality Assurance project in the state as a commercial hub that would provide certification and inspection services for various products for exports for Imo State and other parts of the region to the international market.
