Abuja — JSC Russian Export Centre (REC) has become the latest international financial organisation to join the African Export-Import Bank (Afreximbank) as a shareholder following its successful subscription to Class "C" shares of the pan-African multilateral trade finance bank
The shareholding, which became effective on December 29, 2017, followed discussions between the Bank and Russian officials during which the two sides explored ways of cooperating to take advantage of the numerous opportunities for trade and development between Russia and the African continent.
The discussions resulted in an agreement signed by the President of Afreximbank, Dr. Benedict Oramah and the Chief Executive Officer of REC, Petr Fradkov, on December 11, 2017, by which REC committed to subscribing to the Class "C" Afreximbank shares.
Afreximbank, in a statement said with the new partnership, the two entities have already started working actively on joint projects in a number of African countries, focusing mainly on mining and transport infrastructure.
REC is owned by the State Corporation Bank for Development and Foreign Economic Affairs (Vnesheconombank [VEB]).
Afreximbank shareholders are a mix of public and private entities divided into four classes and consist of African governments, central banks, regional and sub-regional institutions, private investors and financial institutions, as well as non-African financial institutions, export credit agencies and private investors.
Class "A" shareholders are African states, African central banks and African public institutions, including the African Development Bank, while Class "B" is made up of African financial institutions and African private investors.
Class "C" shares are held by non-African investors, mostly international banks and export credit agencies, while Class "D" shares, a tier approved in December 2012, are shares that can be held by any investor.