Afreximbank, Titan Trust Bank sign $300m deal to support traders with $3b
By EDU ABADE, Business Editor
Titan Trust Bank (TTB) has obtained $300 million from the African Export Import Bank (Afreximbank) to acquire Union Bank of Nigeria (UBN). It is a financial backing that will see Titan Trust Bank leveraging the acquisition to provide capital for intra-African trade.
Afreximbank provided the $300 million, which is described as an Intra-African Investment Financing Facility to improve the support African traders would receive from financial markets for the African Continental Free Trade Area (AfCFTA).
With the deal between Afreximbank and Titan Trust Bank, which enabled the latter to acquire 95.41 per cent stakes in UBN, a $3 billion financing medium-term facility would be disbursed by TTB, as the acquisition would grant the firm access to Union Bank’s capital base.
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A statement issued by Afreximbank’s Media Liaison Executive, Amadou Sall, disclosed that: “Afreximbank’s financial support will enable 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.”
“The development impact of the acquisition will be immense as TTB will leverage the merged entity to provide financing of about $3 billion in the medium term of which over $600 million will directly support financing of intra-regional trade.’’
Meanwhile, President and Chairman, Board of Directors of Afreximbank, Benedict Oramah, said deals of this nature with the bank and TTB would bridge the gaps being left by foreign investors, as they exit Africa’s market.
“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-Africa trade and investments, as well as development of regional financial 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 and medium scale enterprises, women-led businesses, youth enterprises and start-ups which are critical to the successful implementation of the Africa Continental Free Trade Area (AfCTFA),” Oramah stated.