Breaking News
Translate

Afreximbank touts depositary receipts to Nigerian investors, targets $300m equity

By Chioma Gabriel

Lagos— The African Export-Import Bank’s (Afreximbank)  met in Lagos Tuesday with leading Nigerian investors to push for strong participation in the bank’s $300 million equity offering, for which it is using depositary receipts backed by its Class “D” shares.

The depositary receipts, which will be listed on the Stock Exchange of Mauritius and is being managed by SBM Asset Mangers as lead arranger, will open Afreximbank shareholding to the investor public and will mark the first time a supranational bank is issuing depositary receipts through an African stock exchange.

Afreximbank is aiming to raise between $100 million and $300 million through the depositary receipts issuance as part of its target to mobilise up to $1 billion in equity from new and existing investors over the next five years.

President of Afreximbank, Dr. Benedict Oramah, told the investors that the issuance of the depositary receipts was to enhance the bank’s capitalization so as to significantly narrow the trade financing gap in Africa, which is currently estimated at $120 billion annually, and to meet the strategic objective of growing intra-African trade.

Kee Chong Li Kwong Wing, Chairman of SBM Group, said the decision to use Mauritius for the depositary receipts issue took into account the country’s highly developed financial services system and its experience in similar investment drives, including the major role it played in channelling billions of dollars in investment into India following the opening up of that country.

Mr. Li stated that, as part of its support for the Afreximbank depositary receipts issue, the government of Mauritius planned to grant permanent residency to investors putting in up to $500,000. The minimum investment amount is $30,000.

Among guests at the event were Nigeria’s top business leaders, investors and public officials, including Aliko Dangote, President of the Dangote Group; Gov. Godwin Obaseki of Edo State; former Gov. Donald Duke of Cross River State; a representative of the Oba of Lagos; and many others.

 


Disclaimer

Comments expressed here do not reflect the opinions of vanguard newspapers or any employee thereof.