Afreximbank launches US$6.5 billion capital increase

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Afreximbank
Afreximbank

The African Export-Import Bank (Afreximbank) has embarked on a 6.5-billion-U.S. dollar general capital increase to expand its capacity to deliver on its core mandate and diversify its range of services, the bank said on Thursday.

The capital increase, according to the statement sent to Xinhua, will enhance the bank’s capacity to support the procurement of COVID-19 vaccines for the continent, bolster post-pandemic recovery efforts for the economies of African nations and drive the implementation of the African Continental Free Trade Agreement (AfCFTA).

“This is a historic moment for the Bank; it presents a great opportunity to deepen the Bank’s capacity to deliver transformative growth across this continent,” said Benedict Oramah, President of Afreximbank, in the statement.

The statement said the additional capitalization of Afreximbank has been endorsed by the 34th ordinary session of the African Union (AU) Assembly of Heads of State and Government, and member states are expected to contribute up to 1.5 billion dollars as paid-in capital and 3.9 billion dollars in callable capital to meet their total contribution under the capital increase.

According to the statement, the bank’s Board of Directors opened the capital increase to other shareholders of the bank to contribute up to 1.1 billion

dollars to enable them to take part pro-rata to their shareholding in Afreximbank, bringing the total size of the capital increase to 6.5 billion dollars.

The capital increase was approved by Afreximbank shareholders during their 28th annual meeting in July 2021, the statement said. Enditem

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