In a significant move to bolster African financial integration, the African Export-Import Bank (Afreximbank) has announced the disbursement of a $40 million Intra-African Investment Facility to Fidelity Bank Nigeria Plc.
This funding will support Fidelity Bank’s acquisition and recapitalisation of Union Bank UK, marking a pivotal step in its international expansion programme.
The facility, provided in two tranches of $20 million each, enabled Fidelity Bank to refinance the acquisition of a 100% equity stake in Union Bank UK and inject additional equity into the bank, as approved by the UK’s financial regulator.
With this acquisition, Fidelity Bank is set to establish a new pan-African financial institution capable of offering correspondent banking and offshore services to African banks and catering to the banking needs of the African diaspora.
Kanayo Awani, Executive Vice President of Afreximbank, emphasised the strategic importance of this transaction, aligning with the bank’s goal to promote African control of capital and enhance intra-African trade and investments. “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,” Awani stated.
Dr (Mrs) Nneka Onyeali-Ikpe, MD/CEO of Fidelity Bank, expressed gratitude for Afreximbank’s support, highlighting the strong partnership between the two institutions. She noted that the refinancing of Union Bank UK will unlock additional value and help create a scalable and sustainable service franchise to support trade businesses in Africa and the diaspora.
This strategic transaction is expected to contribute to Africa’s economic growth by increasing trade finance and flows between Nigeria and the UK, integrating the African Diaspora into regional supply chains, and enhancing the competitiveness of SMEs across the continent.
Ozioma Samuel-Ugwuezi
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