African Export Import Bank (Afreximbank) has announced the disbursement of a US$300 million Intra-African Investment Financing Facility to Titan Trust Bank (TTB) to support its acquisition of a majority stake in Union Bank Plc, Nigeria (UBN).
The deal will 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-capitalized 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.
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).
Commitment to strengthening indigenous financial institutions
Commenting on the transaction, Professor Benedict Oramah, President and Chairman of the Board of Directors of Afreximbank, emphasized the Bank’s commitment to strengthening the position of indigenous financial institutions, thereby increasing Africa’s control over its own financial markets and creating greater economic resilience for the continent.
“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.
“Afreximbank is confident that the transaction will engender confidence in the Nigerian financial system, attract additional capital investments and support the financial inclusion of small-scale enterprises, women-led businesses, youth enterprises and start-ups who are critical to the successful implementation of the AfCFTA”.
Professor Benedict Oramah
Mr Mudassir Amray, Managing Director and CEO of Titan Trust Bank, thanked Afreximbank for the exceptional support throughout the transaction. He commended the Afreximbank team for its professionalism and dedication which led to the successful completion of this landmark transaction in a record time.
“Afreximbank is one of a handful of organizations that remain bullish in Africa in this period of global uncertainty. The new merged entity will continue to work with Afreximbank to support businesses to promote intra- African trade”.
Mudassir Amray
Afreximbank pledged that it will continue to support the new merged entity in trade finance to promote intra- and extra-African trade through its broad range of programs and initiatives, including the Afreximbank Trade Facilitation Programs (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 US$3 billion over the medium term of which over US$600 million will directly support intra-regional trade finance.
Exploits of Titan Trust Bank
Titan Trust Bank (TTB) is the newest national commercial bank in Nigeria. It commenced operation in Oct 2019 with a strong capital base and has demonstrated precision in execution of its strategy by showing tremendous growth, even in difficult times.
Titan Trust Bank has received industry-wide recognition, having been named ‘Best Trade Finance Provider in Nigeria’ for 2022 by Global Finance (for the second year running) and ‘Best New Commercial Banking Brand’ and ‘Fastest Growing Digital Banking Brand’ for 2021 by the Global Brand.
TTB is a member of the Tropical General Investment (TGI) Group – a Pan-African group with diversified investments across seven African countries in various industries and a large network of origination, distribution, and supply chain hubs.
Afreximbank, a Pan-African multilateral financial institution, is mandated to finance and promote intra-and extra-African trade. Afreximbank deploys innovative structures to deliver financing solutions that support the transformation of the structure of Africa’s trade, accelerating industrialization and intra-regional trade, thereby boosting economic expansion in Africa.
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