Afreximbank Shell out $40m to Support Fidelity Bank's Move To Acquire Union Bank UK.

Nneka Onyeali-Ikpe,

Following its commitment to fostering African economic sovereignty, the African Export-Import Bank (Afreximbank) has disbursed a substantial US$40-million Intra-African Investment Facility to Fidelity Bank Nigeria Plc ("Fidelity"). 

This financial endorsement is aimed at bolstering Fidelity Bank's acquisition and subsequent recapitalization of Union Bank UK, a pivotal step in Fidelity's global growth strategy.

The facility, delivered in two US$20 million tranches, has played a crucial role in Fidelity's endeavor. The initial tranche facilitated a partial refinancing of Fidelity's complete acquisition of Union Bank UK's equity. The second tranche served as a capital reinforcement, approved by UK regulators, to bolster the bank's financial foundation.

This acquisition marks the genesis of a new pan-African banking titan, with Fidelity Bank now at the helm of providing comprehensive banking services across Africa and for Africans abroad.

Kanayo Awani

Kanayo Awani, Executive Vice President of Afreximbank, highlighted the significance of this disbursement as a reinforcement of African control over capital and a catalyst for intra-African trade and investment. 

"This transaction is a testament to our dedication to enhancing African trade and economic stability, and it aligns perfectly with our vision for a self-reliant Africa as outlined in Agenda 2063,"

Afreximbank's Bank Acquisition Strategy and Diaspora Strategy are at the core of this initiative, promoting the acquisition of financial assets by African entities and the economic integration of the African diaspora.

Dr. (Mrs.) Nneka Onyeali-Ikpe, MD/CEO of Fidelity Bank, expressed gratitude for Afreximbank's support, which has been instrumental in Fidelity's international growth and the creation of a scalable service franchise that will invigorate trade and diaspora banking.

The acquisition is set to be a boon for Africa's economic landscape, enhancing trade finance, fostering diaspora integration, and empowering small and medium-sized enterprises to scale up their export and manufacturing capabilities.