Afreximbank backs Union Bank acquisition with $300m, amid exit by foreign investor

African Export Import Bank (Afreximbank) has provided $300 million in financial support for the acquisition of Union Bank Nigeria (UBN) by Titan Trust Bank Limited, after the majority foreign investor, Atlas Mara, decided to quit the Nigerian market.

Titan Trust Bank secured the funding as part of Afreximbank’s effort in enabling African investors control the financial market in the continent, a statement signed by Afreximbank’s media personnel, Amadou Sall, said.

Afreximbank didn’t state if the $300 million was disbursed as loan or in exchange of a stake in Union Bank, where Titan Trust Bank now owns 95.41% stake in. The deal is reportedly above N100 billion based on its market valuation.

Atlas Mara had began looking for buyers of its stake in Union Bank since 2021, and Access Bank was linked to the acquisition. However, the majority shareholder, alongside Union Global Partners Limited,, sold to Titan Trust Bank, which is a subsidiary of TGI Group.

In the statement released on Monday, Afreximbank said, “African Export Import Bank (Afreximbank) has announced the disbursement of a US$300 million Intra-African Investment Financing Facility to Titan Trust Bank (TTB) to support its acquisition of a majority stake in Union Bank Plc, Nigeria (UBN).”

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The pan-African creditor explained its reasons for backing the deal, disclosing that Titan Trust’s acquisition of Union Bank will enable the acquirer provide $600 million to aid intra-regional trade finance, out of an expected $3 billion financing for medium term.

“Afreximbank’s financial support enables TTB to secure the acquisition of a well-capitalised bank with an extensive network, enabling the entity to better serve vital economic activities of the public sector, companies, and small and medium-sized enterprises,” Sall said.

Commenting on the deal, the President and Chairman of the Board of Directors of Afreximbank, Benedict Oramah, opined that, “The bank remains committed to enhancing the position of indigenous financial institutions.”

Oramah explained that the acquisition would strengthen the partnership between Africa’s financial markets and intra-African trade, as well as investments, amid the adoption of the Africa Free Trade Agreement (AcFTA).

“As international capital retreats from Africa, we must redouble our efforts to build an effective and resilient financial services sector on the continent committed to intra-African trade and investments and the development of regional value chains.

“Afreximbank is confident that the transaction will engender confidence in the Nigerian financial system and attract additional capital investments.It would also support the financial inclusion of small-scale enterprises, women-led businesses, youth enterprises and start-ups which are critical to the successful implementation of the AfCFTA’’. Oramah said.

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