Nigeria: Afreximbank Shareholders Invest U.S.$500 Million in New Equity

24 January 2020

The African Export-Import Bank (Afreximbank) has announced that existing shareholders have invested $500 in new equity to strengthen it.

A statement released by the bank yesterday indicated that the shareholders, including the Federal Republic of Nigeria and the Arab Bank for Economic Development in Africa, invested $200 million in shares and $300 million in callable capital, bringing the total value of new shares issued by the bank in 2019 to $500 million.

The bank said 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, 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.

The statement quoted President of Afreximbank, Prof. Benedict Oramah, saying "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."

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