Afreximbank Funds Titan Trust Bank With $300million For Acquisition Of Union Bank

Afreximbank has provided Titan Trust Bank (TTB) with a $300 million Intra-African Investment Financing Facility to assist it in acquiring a controlling stake in Union Bank of Nigeria (UBN) plc.

On Monday, Amadou Sall, Afreximbank’s Media Contact, issued a statement confirming this.

According to Sall, the deal will enhance the competitive dynamics of the Nigerian banking industry while preserving trust in the country’s financial services and overall financial stability.

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The statement reads, “African Export Import Bank (Afreximbank) has announced the disbursement of a US$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 newly disbursed facility, he said, will help supplement the monies needed for the anticipated 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,” he stated.

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According to Sall, TTB is a subsidiary of the Tropical General Investment (TGI) Group, a Pan-African conglomerate with broad assets in numerous industries throughout seven African countries and a vast network of origination, distribution, and supply chain hubs.

TTB plans to leverage the UBN purchase to expand its capacity in order to take advantage of the African Continental Free Trade Area’s unrivaled potential, he said (AfCFTA).

Through its broad variety of programs and activities, Afreximbank will continue to help the newly merged company in trade finance to encourage intra- and extra-African trade, according to Sall.

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He said, “The development impact of the acquisition is immense as TTB will leverage the merged entity to provide financing of about three billion dollars over the medium term of which over 600 million dollars will directly support intra-regional trade finance.’’

“The bank remains committed to enhancing the position of indigenous financial institutions,” said Prof. Benedict Oramah, President and Chairman of the Board of Directors of Afreximbank, according to the statement.

According to Oramah, this would give Africa more control over its financial markets and strengthen the continent’s economic resilience.

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“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’’.