NIGERIA – Titan Trust Bank (TTB) has received a US$300 million Intra-African Investment Financing Facility from Afreximbank to help it acquire a controlling share in Union Bank of Nigeria (UBN) plc.
The agreement, according to Amadou Sall, Afreximbank’s Media Contact, will improve the competitive dynamics of the Nigerian banking market while retaining confidence in the country’s financial services and overall financial stability.
He said the recently disbursed facility would complement the funds required for the proposed 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.
TTB is a member of the Tropical General Investment (TGI) Group, which is a Pan-African conglomerate with diversified investments in various industries across seven African countries and a large network of origination, distribution, and supply chain hubs, according to Sall.
TTB would use the UBN acquisition to boost its capacity to take advantage of the African Continental Free Trade Area’s unrivalled potential, he said (AfCFTA).
Sall said Afreximbank would continue to support the newly merged entity in trade finance to promote intra- and extra-African trade through its broad range of programmes and initiatives.
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.
“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,” Oramah said.
“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’’.
African Export-Import Bank (Afreximbank) is a Pan-African multilateral financial institution mandated to finance and promote intra-and extra-African trade.
Titan Trust Bank, a subsidiary of TGI Group recently completed a majority stake acquisition in Union Bank of Nigeria
The Titan Trust Bank is Nigeria’s newest national commercial bank. It started operations in October 2019 with a strong capital basis and has shown significant growth, especially in difficult times, demonstrating precision in plan execution.
New CEO for Union Bank
Union Bank has appointed Mudassir Amray as the new chief executive officer (CEO).
Amray is a seasoned banker with well-rounded exposure of over 25 years in senior management roles and a proven track record of adaptability in six geographical regions, including USA, Nigeria, Malaysia, Hong Kong, Singapore and Pakistan.
He obtained his Bachelor of Commerce from National College, University of Karachi, and then went further to get an MBA from the University of Santo Tomas.
His experience cuts across corporate banking, investment banking, treasury, trade, and a bit of retail banking, giving him the balance needed to drive effectiveness.
Before moving to Titan Trust Bank, Amray was with Citibank New York where he spent most of his career, holding various senior positions at Citibank and other foreign & local banks throughout his career.
Liked this article? Subscribe to DealStreet Africa News, our regular email newsletter with the latest news, deals, and insights from Africa’s business, economy, and more. SUBSCRIBE HERE
