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From Uche Usim, Abuja
African Export Import Bank (Afreximbank) on Monday said it had secured a $300 million Intra-African Investment Financing Facility to Titan Trust Bank (TTB) to support its acquisition of a majority stake in Union Bank Plc, Nigeria (UBN).
The deal, according to Afreximbank, will enhance the competitive dynamics of the Nigerian banking sector, while maintaining confidence in the country’s financial services and broader financial stability.
The recently-disbursed financing 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.
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, TTB will leverage the acquisition of UBN to enhance its capacity to capitalize on the unparalleled opportunities presented by the African Continental Free Trade Area (AfCFTA).
Afreximbank will continue to support the new merged entity in trade finance to promote intra- and extra-African trade through its broad range of programmes and initiatives, including the Afreximbank Trade Facilitation Programmes (AfTRAF) and AfPAY, the Bank’s international payment services.
