Sunday, September 21, 2014

Nigeria: Shareholders to inject $500m into Afreximbank


The African Export-Import Bank (Afreximbank) is to receive a $500-million capitalization following a decision by the bank’s shareholders on Saturday in Cairo, Egypt to authorise a share offering to its existing shareholders.A statement by Afreximbank seen by APA in Lagos on Saturday, said that the shareholders had at the Fourth General Meeting of the bank signed off on the $500-million share offering which would be in the form of paid up funds that would increase the bank’s capitalization.


It said this would enable it take advantage of the tremendous financing opportunities as a result of the rapidly rising demand for its services and the quickening of Africa’s economic growth while maintaining sound credit rating.

It added that the shareholders were acting on the recommendation of the Board of Directors which requested them to support the share offering that would be allocated on a pro rata basis to existing shareholders according to the level of their current subscriptions to shares in the bank.

Under the terms of the decision, shareholders would have the right to transfer their offering to another existing or new shareholder, but with the approval of the Board.
In addition, existing shareholders are allowed to accept the offering by migrating to Class A shareholding.

According to the statement, the offer can be prefinanced by the bank by a bridging or other financing arrangement on terms determined by the Board.

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