LAGOS, Nigeria (VOICE OF NAIJA)-The African Export-Import Bank (Afreximbank) has provided a $40 million Intra-African Investment Facility to support Fidelity Bank Nigeria Plc in its acquisition and recapitalisation of Union Bank UK.
This facility was disbursed in two tranches of $20 million each, allowing Fidelity Bank to refinance the acquisition and inject additional equity into Union Bank UK.
The Executive Vice President of Afreximbank’s Intra-African Trade Bank and Export Development, Kanayo Awani, highlighted that this disbursement is part of Afreximbank’s strategy to enhance African control and ownership of capital, boost intra-African trade and investments, and foster financial integration between Africa and its diaspora.
“Fidelity Bank’s acquisition of Union Bank UK aligned with Afreximbank’s Intra-African Investment Facility. It was a significant milestone for both institutions, reinforcing African ownership and control within the global financial landscape,” Awani said.
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The acquisition is anticipated to stimulate Africa’s economic growth and development by enhancing trade finance and increasing trade flows between Nigeria and the UK, both within Africa and internationally.
It will also facilitate the integration of the African Diaspora into regional and continental supply chains and enhance the export competitiveness and manufacturing capabilities of small and medium-sized enterprises across the continent.
Managing Director and CEO of Fidelity Bank, Dr. Nneka Onyeali-Ikpe, expressed gratitude to Afreximbank for supporting their expansion initiatives, She noted that the refinancing would unlock additional value and help establish a scalable and sustainable service franchise to support trade businesses in Africa and diaspora banking.
“The refinancing of the Union Bank acquisition by Afreximbank will unlock additional value and help create a scalable and more sustaining service franchise that will support trade businesses in Africa and diaspora banking,” Onyeali-Ikpe said.
The acquisition and recapitalisation of Union Bank UK by Fidelity Bank, with support from Afreximbank, represents a major step in advancing African ownership and control within the global financial landscape.