The African Export Import Bank (Afreximbank) has announced that it has extending a $300 million Intra-African Investment Financing Facility to Titan Trust Bank (TTB) to support the acquisition of a majority stake in Union Bank Plc, Nigeria (UBN).
It said the disbursed financing would complement the funds required for the proposed acquisition.
In a statement, the multilateral institution explained that the deal would enhance the competitive dynamics of the Nigerian banking sector, while maintaining confidence in the country’s financial services and broader financial stability.
“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,” the statement read in part.
“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.
“The development impact of the acquisition is immense as TTB will leverage the merged entity to provide financing of about $3 billion over the medium term of which over $600 million will directly support intra-regional trade finance,” it added.
