AFREXIMBANK PROVIDES FIDELITY BANK WITH $40 MILLION FOR THE ACQUISITION OF UNION BANK UK:

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Olori Uwem

Member
Mar 18, 2024
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AFREXIMBANK PROVIDES FIDELITY BANK WITH $40 MILLION FOR THE ACQUISITION OF UNION BANK UK:

1. Transaction Details:
- The African Export-Import Bank (Afreximbank) has disbursed $40 million to Fidelity Bank Plc.
- The funds are designated for Fidelity Bank's acquisition and recapitalization of Union Bank United Kingdom.
- The financial support was given in two $20 million tranches: the first to help refinance the acquisition and the second for recapitalization, as approved by the UK banking regulator.

2. Purpose of Acquisition:
- The acquisition is part of Fidelity Bank's international expansion strategy.
- It aims to offer correspondent banking and offshore banking services to African banks and meet the banking needs of Africans in the diaspora.

3. Economic Impact:
- The acquisition is expected to foster economic growth in Africa by enhancing trade finance and trade flows between Nigeria and the UK.
- It will also integrate the African Diaspora into regional and continental supply chains and improve export competitiveness for SMEs in Africa.

4. Statements from Officials:
- Kanayo Awani, Executive Vice President of Afreximbank, highlighted that the transaction aligns with Afreximbank’s Intra-African Investment Facility, promoting African ownership and control in the global financial landscape.
- Mrs. Nneka Onyeali-Ikpe, MD/CEO of Fidelity Bank, expressed gratitude to Afreximbank for supporting the bank's international growth and expansionary initiatives.

5. Afreximbank’s Strategy:
- Afreximbank's Bank Acquisition Strategy aims to empower African entities to acquire financial assets divested by foreign entities in Africa and the diaspora.
- The support extends Fidelity Bank’s services to African and African-owned businesses in the UK, enhancing products to support Diaspora investments.

This information outlines the strategic importance and economic implications of Fidelity Bank's acquisition of Union Bank UK, supported by Afreximbank.