Nigeria: Afreximbank assist Fidelity Bank’s UK expansion with $40m

The African Export-Import Bank has disbursed a $40 million Intra-African Investment Facility to support Fidelity Bank Nigeria Plc’s acquisition and recapitalization of Union Bank UK.

This facility was provided in two tranches of $20 million each, enabling Fidelity Bank to refinance the acquisition and inject additional equity into the newly acquired bank.

Kanayo Awani, the Executive Vice President of Afreximbank’s Intra-African Trade Bank and Export Development, stated on Tuesday via the bank’s website that the disbursement aligns with Afreximbank’s goals of promoting African control and ownership of capital, enhancing intra-African trade and investments, and fostering 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.

Additionally, it will facilitate the integration of the African Diaspora into regional and continental supply chains, while also enabling small and medium-sized enterprises across the continent to enhance 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 recapitalization 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.