Shareholders to inject $500 million into Afreximbank

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By TESTCustomwebLP TESTCustomwebLP September 22, 2014 14:49

Shareholders to inject $500 million into Afreximbank

The African Export-Import Bank (Afreximbank) is to receive a $500-million capitalization following a decision by the Bank’s shareholders today to authorise a share offering to the Bank’s existing shareholders.

The decision was finalized during the shareholders’ Fourth Extraordinary General Meeting in Cairo. The share offering will be in the form of paid up funds that will increase the Bank’s capitalization to enable it to “take advantage of the tremendous financing opportunities as a result of the rapidly rising demand for its services and the quickening of Africa’s economic growth while maintaining sound credit rating”.

Under the terms of the decision, shareholders will have the right to transfer their offering to either a new shareholder or an existing shareholder, but with the approval of the Board of Directors. In addition, existing shareholders are allowed to accept the offering by migrating to a different class of shareholding.
Earlier, Afreximbank President Jean-Louis Ekra had told the shareholders that the Bank had been a victim of its own success, noting that it had grown very fast, but, as a consequence, demand for its services had grown even faster.

Ekra said: “Approving this share offering will give Afreximbank the capacity to continue to be relevant to the African continent.”

Benedict Oramah, Executive Vice President of Afreximbank in charge of Business Development and Corporate Banking, said that the capitalisation would raise the bank’s annual trade finance capacity to about $40 billion and would enable it to attract approximately $60 billion in additional financing into Africa through its syndication activities.

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By TESTCustomwebLP TESTCustomwebLP September 22, 2014 14:49