The African Export-Import Bank (Afreximbank) is set for a successful listing of its depositary receipts (DRs) programme on the official market of the Stock Exchange of Mauritius (SEM). This follows the successful close of the private placement with subscription far in excess of the $100 million minimum target.
“We are pleased to have successfully opened the Bank to the equity capital markets. This will complement the tremendous support Afreximbank continues to receive from its core sovereign shareholders and place the Bank in a stronger position to pursue the vast opportunities before it, said Afreximbank President, Dr Benedict Oramah.
In its communique on July 24 2017, SEM had announced approval of the proposed listing on the official market of up to 69,770,000 depositary receipts backed by 6,977 Class D shares of Afreximbank, subject to Afreximbank raising the minimum aggregate amount of $100 million through the private placement. The approval was for Afreximbank to list the full 69, 770,000 within 12 months.
In pursuance of the DR issuance, Afreximbank organized investor meetings and roadshows in Port Louis, Lagos, Abu Dhabi, Dubai, Nairobi, New York, and London, drawing very positive responses from the investor public. Afreximbank’s goal was to achieve a subscription level between the required aggregate minimum of $100 million and an upper limit of $300 million notwithstanding the 12-month window allowed.
Reacting to the conclusion of the private placement, Afreximbank President, Dr. Benedict Oramah said that he was impressed by the high level of support received from investors and noted that the DRs would enhance the Bank’s capitalization, enabling it contribute more significantly to narrowing the trade financing gap in Africa and to growing intra-African trade and export manufacturing in Africa. He added that it would pave the way for greater private sector equity participation in the Bank and for deepening Africa’s capital markets.
The first day of listing and trading of the Afreximbank DRs will be 4 October when 5,000 DRs must, by regulation, be made available for trading at a price of $4.30 per DR. The private placement closed on 26 September.
What you didn’t know about Afrexim Bank
- Afrexim Bank is the foremost Pan-African multilateral financial institution devoted to financing and promoting African trade.
- It was established under two basic constitutive instruments which are the Agreement signed by member states and multilateral organisations, which gives the bank the status of an international multilateral organisation and the Charter, which governs its corporate structure and operations.
- The bank was established in October 1993 by African governments, African private and institutional investors, and non-African investors.
- Afrexim Bank commenced operations on 30 September 1994, following the signature of a Headquarters Agreement with the host Government in August 1994.
- Since 1994, it has approved more than 51 billion dollars in credit facilities for African businesses, including about 10.3 billion dollars in 2016.
- Afreximbank has total assets of 9.4 billion dollars as at April 30, 2016
- The Bank is rated BBB+ (GCR), Baa1 (Moody’s), and BBB- (Fitch).
- The bank is based in Cairo, Egypt.
- Afreximbank’s shareholders are a four-tier mix of public and private entities.
- Class “A” shareholders are constituted of African states, African central banks and African public institutions.
- Class “B” shareholders are made up of African financial institutions and African private investors;
- Class “C” shares are held by non-African investors, mostly international banks and export credit agencies.
- Class “D” fully paid shares can be held by any investor.