Nigeria, Other Shareholders Invest $500m New Equity in Afreximbank

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By Ndubuisi Francis in Abuja

The African Export-Import Bank (Afreximbank) has announced that existing shareholders, including Nigeria and the Arab Bank for Economic Development in Africa have invested $200 million 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.

The majority of the proceeds of the capital raised was used by the bank to retire warrants that were issued in December 2018, the pan-African multilateral financial institution devoted to financing and promoting intra- and extra-African trade said in a statement.

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 (AfCFTA), the largest free trade area created worldwide since the formation of the World Trade Organisation (WTO).

Commenting on the fresh investment, the President of Afreximbank, Prof. Benedict Oramah, said: “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.”

The bank continues to monitor market conditions to find the appropriate window to re-launch its initial public offering in London.