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Afreximbank supports Titan Trust’s acquisition of Union Bank with $300m

Afreximbank has disbursed $300 million Intra-African Investment Financing Facility to Titan Trust Bank (TTB), to support its acquisition of a majority stake in Union Bank of Nigeria (UBN) Plc.

Afreximbank’s Media Contact, Amadou Sall, in a statement yesterday, said the deal would enhance the competitive dynamics of the Nigerian banking sector while maintaining confidence in the country’s financial services and broader financial stability.

He said the recently disbursed facility will complement the funds required for the proposed acquisition.

“Afreximbank’s financial support enables TTB to secure the acquisition of a well-capitalised bank with an extensive network, enabling the entity to better serve vital economic activities of the public sector, companies, and small and medium-sized enterprises.”

Sall said TTB is a member of the Tropical General Investment (TGI) Group, a pan-African group with diversified investments across seven African countries in various industries and a large network of origination, distribution, and supply chain hubs.

He said TTB will leverage the acquisition of UBN to enhance its capacity to capitalise on the unparalleled opportunities presented by the African Continental Free Trade Area (AfCFTA).

He added that Afreximbank will continue to support the newly merged entity in trade finance to promote intra- and extra-African trade through its broad range of programmes and initiatives.

These include the Afreximbank Trade Facilitation Programmes (AfTRAF) and AfPAY, the bank’s international payment services.

“The development impact of the acquisition is immense as TTB will leverage the merged entity to provide financing of about $3 billion over the medium term of which over $600 million will directly support intra-regional trade finance.”

As international capital retreats from Africa, we must redouble our efforts to build an effective and resilient financial services sector on the continent committed to intra-African trade and investments and the development of regional value chains.

The President and Chairman, Board of Directors, Afreximbank, Prof. Benedict Oramah, emphasised the Bank’s commitment to strengthening the position of indigenous financial institutions, thereby increasing Africa’s control over its own financial markets and creating greater economic resilience for the continent.

“As international capital retreats from Africa, we must redouble our efforts to build an effective and resilient financial services sector on the continent committed to intra-African trade and investments and the development of regional value chains.

“Afreximbank is confident that the transaction will engender confidence in the Nigerian financial system and attract additional capital investments.

“It would also support the financial inclusion of small-scale enterprises, women-led businesses, youth enterprises and start-ups which are critical to the successful implementation of the AfCFTA,” he said.

The Managing Director/CEO, Titan Trust Bank, Mudassir Amray, thanked Afreximbank for the exceptional support throughout the transaction.

He also commended the Afreximbank team for its professionalism and dedication which led to the successful completion of this landmark transaction in a record time. 

“Afreximbank is one of a handful of organisations that remain bullish in Africa in this period of global uncertainty. The new merged entity will continue to work with Afreximbank to support businesses to promote intra- African trade,” he said.

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