Afreximbank backs Fidelity Bank’s UK expansion with $40m facility

The African Export-Import Bank ( Afreximbank) has disbursed a $40m Intra-African Investment Facility to back Fidelity Bank Nigeria Plc’s acquisition and recapitalisation of Union Bank UK.

The facility, provided in two tranches of $20m each, enabled Fidelity Bank to refinance the acquisition and inject additional equity into the acquired bank.

The Executive Vice President of Afreximbank’s Intra-African Trade Bank and Export Development, Bank, Kanayo Awani, in a statement on the bank’s website on Tuesday, said the disbursement aligns with Afreximbank’s efforts to promote African control and ownership of capital, improve intra-African trade and investments, and foster financial integration between Africa and its diaspora.

“Fidelity Bank’s acquisition of Union Bank UK aligned with Afreximbank’s Intra-African Investment Facility. It was a significant milestone for both institutions, reinforcing African ownership and control within the global financial landscape,” Awani said.

The acquisition is expected to contribute to Africa’s economic growth and development by increasing intra- and extra-African trade finance and trade flows between Nigeria and the UK.

It will also support the integration of the African Diaspora into regional and continental supply chains and enable small and medium-sized enterprises across the continent to improve their export competitiveness and light export manufacturing capabilities.

The Managing Director and Chief Executive Officer of Fidelity Bank, Dr. Nneka Onyeali-Ikpe, thanked Afreximbank for supporting their expansionary initiatives, stating that the refinancing will unlock additional value and create a scalable and sustainable service franchise that will 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 support trade businesses in Africa and diaspora banking,” Onyeali-Ikpe said.

The acquisition and recapitalisation of Union Bank UK by Fidelity Bank, supported by Afreximbank, marks a significant milestone in promoting African ownership and control in the global financial landscape.