Afreximbank gets fresh $500 million capital injection

Prof. Benedict Oramah, President of Afreximbank

The African Export-Import Bank (Afreximbank or the Bank) has announced that existing shareholders, including the Federal Republic of Nigeria and the Arab Bank for Economic Development in Africa, have invested $200 million through Class A, B and C shares and $300 million in callable capital, bringing the total value of new shares issued by the Bank in 2019 to $500 million.

The majority of the proceeds of the capital raised was used by the Bank to retire warrants that were issued in December 2018.

The new equity also puts the Bank in a strong position to continue its growth in line with its strategic plan, particularly in the wake of the recently launched African Continental Free Trade Area, the largest free trade area created worldwide since the formation of the World Trade Organization.

The Bank continues to monitor market conditions to find the appropriate window to re-launch its initial public offering in London.

Prof. Benedict Oramah, President of Afreximbank, said:
“The equity injection reflects the confidence which our existing shareholders have in the Bank and the Bank welcomes their decision to rapidly take up additional equity.

We are well-positioned to take advantage of our relationships with our member states to provide a platform for trade and investment flows across the continent, delivering returns for the Bank and growth for African
businesses.

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The African Export-Import Bank (Afreximbank) is the foremost pan-African multilateral financial institution devoted to financing and promoting intra- and extra-African trade. The Bank was established in October 1993 by African governments, African private and institutional investors, and non-African investors.

Its two basic constitutive documents are the Establishment Agreement, which gives it the status of an international organization, and the Charter, which governs its corporate structure and operations.

Since 1994, it has approved more than $67 billion in credit facilities for African businesses, including $7.2 billion in 2018.

Afreximbank had total assets of $13.4 billion as at 31 December 2018. It is rated A- (GCR), Baa1 (Moody’s), and BBB- (Fitch). The Bank is headquartered in Cairo.

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