TheCable

The African Export-Import Bank (Afreximbank) says it wants Nigerian investors to partake in its $300 million equity offering, and get permanent residence in Maritius, a choice Africa Island.

Speaking at an event on Thursday, Benedict Oramah, president of Afreximbank, told the investors that the equity offering would be issued through depository receipts backed by its Class ‘D’ shares for new and old investors in the bank.

According to NAN, Oramah said Class ‘D’ shareholders can be any investor as the aim was to generate between $100 million and $300 million as part of the bank’s target to mobilise up to $1 billion to boost African trade over the next five years.

He told investors that the issuance of the receipts was to enhance the bank’s capitalisation so as to significantly narrow the trade financing gap in Africa, currently estimated at $120 billion annually.

According to him, the issuance also represents an opportunity for Afreximbank to diversify its shareholder base by enabling investors in Africa and beyond who have not yet invested in the bank to do so.

He said that the receipts would be listed on the Stock Exchange of Mauritius and managed by SBM Asset Managers as lead arranger.

Kee Chong Li Kwong Wing, chairman of SBM Group, said that the decision to use Mauritius was due to the country’s highly developed financial services system and its experience in similar investment drives.

Li said that as part of its support for the Afreximbank depository receipts issue, the government of Mauritius planned to grant permanent residency to investors putting in up to $500,000 into the offer.

According to him, the minimum investment amount is $30,000.

Those present at the event include Aliko Dangote, president of the Dangote Group, Godwin Obaseki, governor of Edo, Donald Duke, former governor of Cross River; a representative of Oba of Lagos and many others.

Afreximbank’s shareholders are a four-tier mix of public and private entities with Class ‘A’, consisting of African states, African central banks and African public institutions.

Class ‘B’ is made up of African financial institutions and African private investors, Class ‘C’ shareholders are non-African investors’ mostly international banks and export credit agencies.

Afreximbank is a 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, private and institutional investors as well as non-African investors.

Since 1994, it has approved more than $51 billion in credit facilities for African businesses including about $10.3 billion in 2016.

Afreximbank, which has its headquarters in Cairo, had total assets of $11.7 billion as at Dec. 31, 2016 and is rated BBB+ (GCR), Baa1 (Moody’s) and BBB- (Fitch).