Shareholders of Afreximbank invest $500m in additional equity
Shareholders of the African Export-Import Bank (Afreximbank) from the Federal Republic of Nigeria and the Arab Bank for Economic Development in Africa have invested a total sum of $ 500 million in new equity.
The breakdown of the new investment, which was contained in a statement obtained on Thursday showed that existing shareholders of the bank committed new $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 raise were used by the Bank 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 Bank continues to monitor market conditions to find the appropriate window to re-launch its initial public offering in London.
Commenting on this development, Prof. Benedict Oramah, President of Afreximbank, stated that the equity injection reflects the confidence which the bank’s 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”, he said.
