Afreximbank introduces $300m equity offering to Nigerian investors

The African Export-Import Bank (Afreximbank) on Thursday in
Lagos met with leading Nigerian investors to push for strong
participation in the bank’s $300 million equity offering.

Dr Benedict Oramah, the President of Afreximbank, told the
investors that the equity offering would be issued through
depository receipts backed by its Class “D” shares for new and old
investors in the bank.

The News Agency of Nigeria reports that Class “D” shareholders
can be any investor.

Oramah said that the aim was to generate between $100 million
and $300 million as part of the bank’s target to mobilise up to $1
billion to boost African trade over the next five years.

He told investors that the issuance of the receipts was to
enhance the bank’s capitalisation so as to significantly narrow the
trade financing gap in Africa, currently estimated at $120 billion
annually.

He said that the receipts would be listed on the Stock Exchange
of Mauritius and managed by SBM Asset Managers as lead
arranger.

According to him, the issuance also represents an opportunity
for Afreximbank to diversify its shareholder base by enabling
investors in Africa and beyond who have not yet invested in the
bank to do so.

He said that Afreximbank had consistently delivered development
impact in its member countries including Nigeria where virtually
every banking institution had benefited from its support.

Kee Chong Li Kwong Wing, the Chairman of SBM Group, said that
the decision to use Mauritius was due to the country’s highly
developed financial services system and its experience in similar
investment drives.

Li said that as part of its support for the Afreximbank
depository receipts issue, the government of Mauritius planned to
grant permanent residency to investors putting in up to $500,000
into the offer.

According to him, the minimum investment amount is $30,000.

Those present at the event include Aliko Dangote, President of
the Dangote Group, Gov. Godwin Obaseki of Edo, former Gov. Donald
Duke of Cross River; a representative of Oba of Lagos and many
others.

Afreximbank’s shareholders are a four-tier mix of public and
private entities with Class “A”, consisting of African states,
African central banks and African public institutions.

Class “B” is made up of African financial institutions and
African private investors, Class “C” shareholders are non-African
investors’ mostly international banks and export credit
agencies.

Afreximbank is a foremost pan-African multilateral financial
institution devoted to financing and promoting intra- and
extra-African trade.

The bank was established in October 1993 by African governments,
African private and institutional investors as well as non-African
investors.

Its two basic constitutive documents are the Establishment
Agreement which gives it the status of an international
organisation, and the Charter which governs its corporate structure
and operations.

Since 1994, it has approved more than $51 billion in credit
facilities for African businesses including about $10.3 billion in
2016.

Afreximbank had total assets of $11.7 billion as at Dec. 31,
2016 and is rated BBB+ (GCR), Baa1 (Moody’s) and BBB- (Fitch).

The Bank has its headquarters in Cairo.

The African Export-Import Bank (Afreximbank) on Thursday in
Lagos met with leading Nigerian investors to push for strong
participation in the bank’s $300 million equity offering.

Dr Benedict Oramah, the President of Afreximbank, told the
investors that the equity offering would be issued through
depository receipts backed by its Class “D” shares for new and old
investors in the bank.

The News Agency of Nigeria reports that Class “D” shareholders
can be any investor.

Oramah said that the aim was to generate between $100 million
and $300 million as part of the bank’s target to mobilise up to $1
billion to boost African trade over the next five years.

He told investors that the issuance of the receipts was to
enhance the bank’s capitalisation so as to significantly narrow the
trade financing gap in Africa, currently estimated at $120 billion
annually.

He said that the receipts would be listed on the Stock Exchange
of Mauritius and managed by SBM Asset Managers as lead
arranger.

According to him, the issuance also represents an opportunity
for Afreximbank to diversify its shareholder base by enabling
investors in Africa and beyond who have not yet invested in the
bank to do so.

He said that Afreximbank had consistently delivered development
impact in its member countries including Nigeria where virtually
every banking institution had benefited from its support.

Kee Chong Li Kwong Wing, the Chairman of SBM Group, said that
the decision to use Mauritius was due to the country’s highly
developed financial services system and its experience in similar
investment drives.

Li said that as part of its support for the Afreximbank
depository receipts issue, the government of Mauritius planned to
grant permanent residency to investors putting in up to $500,000
into the offer.

According to him, the minimum investment amount is $30,000.

Those present at the event include Aliko Dangote, President of
the Dangote Group, Gov. Godwin Obaseki of Edo, former Gov. Donald
Duke of Cross River; a representative of Oba of Lagos and many
others.

Afreximbank’s shareholders are a four-tier mix of public and
private entities with Class “A”, consisting of African states,
African central banks and African public institutions.

Class “B” is made up of African financial institutions and
African private investors, Class “C” shareholders are non-African
investors’ mostly international banks and export credit
agencies.

Afreximbank is a foremost pan-African multilateral financial
institution devoted to financing and promoting intra- and
extra-African trade.

The bank was established in October 1993 by African governments,
African private and institutional investors as well as non-African
investors.

Its two basic constitutive documents are the Establishment
Agreement which gives it the status of an international
organisation, and the Charter which governs its corporate structure
and operations.

Since 1994, it has approved more than $51 billion in credit
facilities for African businesses including about $10.3 billion in
2016.

Afreximbank had total assets of $11.7 billion as at Dec. 31,
2016 and is rated BBB+ (GCR), Baa1 (Moody’s) and BBB- (Fitch).

The Bank has its headquarters in Cairo.