Afreximbank Disburses $40m to Support Fidelity Bank’s Acquisition of Union Bank UK
The African Export-Import Bank (Afreximbank) has disbursed a $40 million Intra-African Investment Facility to bolster Fidelity Bank Nigeria Plc’s acquisition and recapitalisation of Union Bank UK.
The facility, divided into two tranches of $20 million each, facilitated Fidelity Bank’s refinancing of the acquisition and provided additional equity for the acquired bank.
Kanayo Awani, Executive Vice President of Afreximbank’s Intra-African Trade Bank and Export Development, stated on Tuesday that this disbursement aligns with Afreximbank’s commitment to enhancing African control and ownership of capital, boosting intra-African trade and investments, and fostering financial integration between Africa and its diaspora.
“Fidelity Bank’s acquisition of Union Bank UK represents a significant milestone for both institutions, reinforcing African ownership and control within the global financial landscape,” Awani said.
The acquisition is poised to spur Africa’s economic growth and development by enhancing trade finance and flows between Nigeria and the UK. It also aims to integrate the African diaspora into regional and continental supply chains, enabling small and medium-sized enterprises across the continent to enhance their export competitiveness and light export manufacturing capabilities.
Dr. Nneka Onyeali-Ikpe, Managing Director and Chief Executive Officer of Fidelity Bank, expressed gratitude to Afreximbank for their support. She noted that the refinancing will unlock additional value and create a scalable and sustainable service franchise to support trade businesses in Africa and diaspora banking.
“The refinancing of the Union Bank acquisition by Afreximbank will unlock additional value and help create a scalable and more sustaining service franchise that will supp
ort trade businesses in Africa and diaspora banking,” Onyeali-Ikpe said.
The collaboration between Fidelity Bank and Afreximbank in the acquisition and recapitalisation of Union Bank UK underscores a pivotal moment in advancing African ownership and influence in the global financial sector.
