Afreximbank Disburses $300 Million Finance Facility To Titan Trust Bank

Three million dollars Intra-African Investment Financing Facility has been disbursed by Afreximbank to Titan Trust Bank (TTB) to support its acquisition of a majority stake in Union Bank of Nigeria (UBN) plc.

This is contained in a statement signed by Afreximbank’s Media Contact, Amadou Sall on Monday.

According to Sall, the deal would enhance the competitive dynamics of the Nigerian banking sector while maintaining confidence in the country’s financial services and broader financial stability.

It added that the recently disbursed facility would complement the funds required for the proposed acquisition.

“Afreximbank’s financial support enables Titan Trust Bank to secure the acquisition of a well-capitalised bank with an extensive network, enabling the entity to better serve vital economic activities of the public sector, companies, and small and medium-sized enterprises.’’

He further explained that Titan Trust Bank would leverage the acquisition of Union Bank Nigeria to enhance its capacity to capitalise on the unparalleled opportunities presented by the African Continental Free Trade Area (AfCFTA).

Sall also noted that Afreximbank would continue to support the newly merged entity in trade finance to promote intra- and extra-African trade through its broad range of programmes and initiatives.

He identified the programmes and initiatives to include the Afreximbank Trade Facilitation Programmes (AfTRAF) and AfPAY, the bank’s international payment services.

“The development impact of the acquisition is immense as TTB will leverage the merged entity to provide financing of about three billion dollars over the medium term of which over 600 million dollars will directly support intra-regional trade finance."

The statement quoted Prof. Benedict Oramah, the President and Chairman of the Board of Directors, Afreximbank as saying “the bank remained committed to strengthening the position of indigenous financial institutions".

Oramah said this would, therefore, increase Africa’s control over its financial markets and create greater economic resilience for the continent.

“As international capital retreats from Africa, we must redouble our efforts to build an effective and resilient financial services sector on the continent committed to intra-African trade and investments and the development of regional value chains.

“Afreximbank is confident that the transaction will engender confidence in the Nigerian financial system and attract additional capital investments.

“It would also support the financial inclusion of small-scale enterprises, women-led businesses, youth enterprises and start-ups which are critical to the successful implementation of the AfCFTA."