Afreximbank Funds Fidelity Bank’s $40 Million Union Bank UK Acquisition

Date:

**Headline:** Afreximbank Disburses $40 Million to Support Fidelity Bank’s Acquisition of Union Bank UK

Thank you for reading this post, don't forget to subscribe!

CAIRO, Egypt, June 10, 2024 — The African Export-Import Bank (Afreximbank) has announced the disbursement of a $40-million Intra-African Investment Facility to Fidelity Bank Nigeria Plc to support its acquisition and recapitalization of Union Bank UK as part of Fidelity Bank’s international expansion programme.

The facility was provided in two tranches of $20 million each. The first tranche enabled Fidelity Bank to partially refinance the acquisition of a 100 percent equity stake in Union Bank UK, while the second tranche supported the recapitalization of the acquired bank with additional equity, as approved by the United Kingdom’s regulator.

With this acquisition, Fidelity Bank is set to establish a new pan-African financial institution capable of offering correspondent banking and offshore banking services to African banks and addressing the banking needs of Africans in the diaspora.

Kanayo Awani, Executive Vice President of the Intra-African Trade Bank and Export Development Bank at Afreximbank, highlighted that this transaction aligns with Afreximbank’s goal of promoting African ownership of capital and enhancing intra-African trade and investments. She stated, “Fidelity Bank’s acquisition of Union Bank UK marks a significant milestone, reinforcing African ownership within the global financial landscape. This initiative fosters greater financial integration between Africa and its Diaspora, supporting economic stability and the objectives of Agenda 2063 for a prosperous and self-reliant Africa.”

Awani also noted that Afreximbank’s Bank Acquisition Strategy aims to empower African entities to acquire financial assets divested by foreign entities in Africa and the diaspora, supporting the bank’s Diaspora Strategy to integrate the African Diaspora with the continent.

Dr. (Mrs.) Nneka Onyeali-Ikpe, MD/CEO of Fidelity Bank, expressed gratitude to Afreximbank for backing their international growth initiatives. She said, “The refinancing of the Union Bank UK acquisition by Afreximbank will unlock additional value and help create a scalable service franchise that supports trade businesses in Africa and diaspora banking.”

The acquisition is expected to contribute to Africa’s economic growth by increasing trade finance and trade flows between Nigeria and the UK, integrating the African Diaspora into regional and continental supply chains, and enhancing the export competitiveness of small and medium-sized enterprises across the continent.

Godwin Okafor
Godwin Okaforhttps://naija247news.com
Godwin Okafor is a veteran Financial Journalist, Internet Social Entrepreneur, and the visionary Founder of Naija247news Media Limited. With an extensive career spanning over 16 years in financial journalism, Godwin possesses a wealth of experience that seamlessly bridges both traditional and digital media landscapes. His journey in journalism commenced at Business Day, Nigeria, where he laid the foundation for his prolific career. In 2010, Godwin took a bold step by founding Naija247news Media, a platform that has since become a prominent player in delivering timely and accurate news. Educationally, Godwin Okafor holds a Bachelor's degree in Industrial Relations and Personnel Management from the prestigious Lagos State University, Ojo, Lagos. His commitment to continuous learning led him to the Lagos Business School, where he further honed his skills. Additionally, he is recognized as a Fellow of the University of Pennsylvania, having successfully completed the Wharton Seminar for Business Journalists. Throughout his illustrious career, Godwin has earned acclaim by winning numerous journalism awards, a testament to his dedication to excellence in reporting. Beyond his role as a Financial Journalist, Godwin Okafor wears the hat of the Chairman at Emmerich Resources Limited, the publishing entity behind Naija247news. His visionary leadership has played a pivotal role in shaping the media landscape and establishing Naija247news as a trusted source of information. Godwin Okafor's multifaceted expertise, commitment to journalistic integrity, and leadership in the realm of business journalism underscore his influential presence in both the media and entrepreneurial spheres.

Share post:

Subscribe

Popular

More like this
Related

Former APC North West Vice Chairman Resigns, Citing Lack of Internal Democracy

Salihu Lukman, the former National Vice Chairman (North West)...

Senate President Godswill Akpabio Denies 2027 Presidential Alliance with Nasir El-Rufai

Senate President Godswill Akpabio has vehemently denied any involvement...

Nigeria Seeks $500m World Bank Loan for Rural Roads and Agricultural Marketing

  The Federal Government of Nigeria is requesting a $500...

Nigeria Liability Insurance Pool Sees 51.6% Increase in Gross Premiums for 2023

  The Nigeria Liability Insurance Pool (NLIP) reported a 51.6%...