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The Africa Export and Import Bank (AFREXIMBANK) is targeting to sell its own shares in form of depository receipts on three African stock exchanges including Nigeria.
A depositary receipt is a type of transferable financial security that is traded on a local stock exchange but represents a security, usually in the form of equity, which is issued by a foreign publicly listed company.
Specifically, the Bank has set the third quarter of 2018 to sell the shares in Nigeria. It targets to raise 200million dollars from the Nigerian market.
The capital raising is in line with its plans to grow lending capacity and also increase private ownership in the Bank. Sources close to the development told BusinessDay that they are already in talk with the regulators in the Nigerian capital markets for necessary approvals.
AFREXIMBANK aims to be the Trade Finance Bank for Africa by stimulating a consistent expansion, diversification and development of African trade while operating as a first class, profit-oriented, socially responsible financial institution and a centre of excellence in African trade matters.
The Cairo-base bank which has branch offices in Harare, Abuja, Abidjan and Nairobi, was established in Abuja, Nigeria in October, 1993 by African Governments, African private and institutional investors as well as non-African financial institutions and private investors for the purpose of financing, promoting and expanding intra-African and extra-African trade.
The Bank was established under the twin constitutive instruments of an Agreement signed by member States and multilateral organizations, and which confers on the Bank the status of an international multilateral organization; as well as a Charter, governing its corporate structure and operations, signed by all Shareholders. The authorized share capital of the Bank is Five Billion United States Dollars (US$5 billion), as compiled from its website.
The bank’s plan to sell shares on the Nigeria stock exchange (NSE) this year will be the second biggest in 2018 after MTN’s expected $500 million Initial Public Offering (IPO).
The Nigeria Stock Exchange (NSE) has a market capitalization of N14.9 trillion or $41 billion.
IHEANYI NWACHUKWU
