Business

Afreximbank disburses $40 million to support Fidelity Bank’s acquisition of Union Bank UK

Published

4 months ago

June 10, 2024

Joel Ajayi

With this acquisition, Fidelity Bank is able to birth a new pan-African financial institution capable of providing correspondent banking and offshore banking services to banks in Africa

African Export-Import Bank (Afreximbank) (www.Afreximbank.com) has announced the disbursement of a US$40-million Intra-African Investment Facility to Fidelity Bank Nigeria Plc (“Fidelity”) to support Fidelity Bank’s acquisition and recapitalization of Union Bank UK as part of its international expansion programme.

Provided in two tranches of US$20 million each, the first tranche of the facility enabled Fidelity to part-refinance the acquisition of 100 per cent equity stake in Union Bank UK, while the second tranche was used to support its recapitalisation via the injection of additional equity into the acquired bank, as approved by the United Kingdom’s regulator.

With this acquisition, Fidelity Bank is able to birth a new pan-African financial institution capable of providing correspondent banking and offshore banking services to banks in Africa and servicing the banking needs of Africans in the diaspora.

Commenting on the transaction, Kanayo Awani, Executive Vice President, Intra-African Trade Bank and Export Development Bank, Afreximbank, noted that the disbursement of the facility was part of Afreximbank’s effort to promote African control and ownership of capital while improving intra-African trade and investments.

“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,” Mrs. Awani said. “By supporting this strategic transaction, we are not only bolstering Nigeria’s banking sector but also fostering greater financial integration between Africa and its Diaspora. This initiative is a testament to our commitment to enhancing intra-African trade, promoting economic stability and driving forward the objectives of Agenda 2063 for a prosperous and self-reliant Africa.” She added.

Mrs. Awani stated that Afreximbank’s Bank Acquisition Strategy, empowers African entities to acquire financial assets divested by foreign entities in Africa and the diaspora. This is also in line with the Bank’s Diaspora Strategy which seeks to promote and finance the integration of the African Diaspora with the rest of the continent. .

She noted that, through the facility, Fidelity was extending its services to the UK, in particular, to Africans and African-owned businesses in the UK, including products to support Diaspora investments.

In the words of the MD/CEO of Fidelity Bank, Dr (Mrs) Nneka Onyeali-Ikpe, ‘We are very thankful to Afreximbank for supporting our expansionary initiatives for international growth. It is, indeed, the result of a strong partnership between the two institutions over the years that has produced this good outcome.

The refinancing of the Union Bank (UK) 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.”

The acquisition is expected to contribute to Africa’s economic growth and development by increasing intra- and extra-African trade finance and trade flows between Nigeria and the UK, supporting the integration of the African Diaspora into regional and continental supply chains and enabling small and medium-sized enterprises across the continent to improve their export competitiveness and light export manufacturing capabilities.

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Business

TAJBank Sets Industry Record, Pays 2nd Dividend In 4 Yrs

Published

19 hours ago

October 21, 2024

The Gleamer

…As Shareholders’ Fund Grows By 960%

TAJBank Limited, Nigeria’s fastest growing non-interest bank, has set a new record in Nigeria’s banking sector history with the payment of dividends to its shareholders at the end of its half year ended June 2024, the second in its 4th year of operations.

The multiple award-winning non-interest lender in the half year under review paid 10% cash as interim dividend to its shareholders, following the approval of the financial statements by the Central Bank of Nigeria.

Another major highlight of the bank’s financial report showed that the bank blazed a major trail in financial management with the shareholders’ fund surging from N5 billion in 2019 to over N53 billion in June this year, representing 960% growth in the investors’ fund.

In the half year under review, the bank’s gross earnings rose to N32,846 billion from N17,022 billion recorded in 2023 financial year, representing a 93% increase over the preceding year’s earnings, amongst other impressive financial indices.

Speaking with journalists during a virtual chat at the weekend on the bank’s half year 2024 financial results, particularly on the payment of dividends to the shareholders despite the inclement operating environment, TAJBank’s Founder/CEO, Mr. Hamid Joda, said: “The payment of this second tranche of dividends to our shareholders barely four years of TAJBank’s operations is historic as this is the first time such a feat is recorded in the over 100 years of banking services in Nigeria.

“With this milestone, the bank’s board and management are telling investors in Nigeria and outside the country that TAJBank will consistently add value to their investments and continue to reward them for their confidence in our bank not only financially but also in creating opportunities for them to grow their businesses and improve their wellbeing.

“As the public can see from the latest financial statements of the bank, the sterling performances of TAJBank clearly attest to the management’s proactive strategies and innovativeness in product development and service delivery. All these are aimed at surpassing our customers’ expectations and demonstrating to the investment publics in Nigeria and globally that the primary purpose of being in business is to best serve their interests”, the banker added.

Similarly, the bank’s Co-Founder/Executive Director, Mr. Sherif Idi, enthused: “TAJBank’s impressive financial performance in the current half year 2024 further demonstrated its resilience and the management’s uncommon zeal for excellence in all areas of its operations.

“Let me emphasize here that we are very grateful to all the shareholders and urge them to always support the board and management in their sustained efforts to transform TAJBank to the foremost non-interest bank in Africa, having attained the number one ranking in Nigeria by all assessment standards in this few years of its operations”, the banker added.

It would be recalled that TAJBank had last year impressed its shareholders by raising their earnings per share from N31.06 kobo in FY2022 to N65.40k per share, indicating 114.56% improved returns on their investments.

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