Afreximbank, one of Pan-African multilateral financial institutions statutorily mandated to finance and promote intra-and extra-African trade, 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.
A statement issued by the Afreximbank’s Media Contact, Amadou Sall, on Monday, indicated that the facility would enhance the competitive dynamics of the Nigerian banking system while maintaining investor confidence in the country’s financial services and by implication, the nation’s financial system stability.
In addition, he stated that the disbursed facility would complement the funds required for the acquisition of the old Nigerian lender.
According to him, the multilateral financial institution’s support to the Nigerian bank enables it “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 stressed that 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).
The media contact clarified that multilateral financial institution 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.
Sall listed the programmes and initiatives to include the Afreximbank Trade Facilitation Programmes (AfTRAF) and AfPAY, the bank’s international payment services.
He stated: “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.’’
In his remarks about the deal, Afreximbank’s President and Chairman of the Board of Directors, Prof. Benedict Oramah, said “the bank remained committed to strengthening the position of indigenous financial institutions”, projecting that it will increase Africa’s control over its financial markets and create greater economic resilience for the continent.
He expatiated: “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”, Oramah added.
Titan Trust Bank is a new commercial bank in Nigeria which commenced operation in October 2019. Since its debut, the lender has demonstrated strong capacity in financial services delivery, winning some awards, including the Global Finance Magazine’s ‘Best Trade Finance Provider in Nigeria’ for 2020 and 2021 in recognition of its innovative banking products and services delivery.
