The African Export-Import Bank (Afreximbank) has announced a pivotal $40 million disbursement through its Intra-African Investment Facility to bolster Fidelity Bank Nigeria Plc’s acquisition and recapitalization of Union Bank UK.
This financial facility, provided in two tranches of $20 million each, facilitated Fidelity Bank’s efforts to refinance the acquisition and inject additional equity into the acquired bank. The move underscores Afreximbank’s commitment to fostering African ownership and control of capital, enhancing intra-African trade and investments, and promoting financial integration between Africa and its global diaspora.
In a statement released on Afreximbank’s website, BankKanayo Awani, Executive Vice President of Afreximbank’s Intra-African Trade Bank and Export Development, emphasized the strategic alignment of Fidelity Bank’s acquisition with Afreximbank’s investment objectives. “The acquisition of Union Bank UK by Fidelity Bank represents a significant milestone, reinforcing African ownership and control within the global financial landscape,” Awani stated.
The acquisition is anticipated to contribute significantly to Africa’s economic advancement by boosting intra- and extra-African trade finance activities and enhancing trade flows between Nigeria and the United Kingdom. Moreover, it aims to integrate the African Diaspora into regional and continental supply chains, thereby supporting small and medium-sized enterprises (SMEs) across Africa in enhancing 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 crucial support in expanding their operational footprint. She highlighted that the refinancing of Union Bank UK’s acquisition will unlock additional value and establish a sustainable service franchise capable of supporting trade businesses in Africa and diaspora banking.
The partnership between Afreximbank and Fidelity Bank exemplifies a strategic initiative aimed at promoting African financial autonomy and reinforcing the continent’s global economic presence through targeted investments and partnerships.
