Mauritius based Advanced Finance and Investment Group (AFIG Funds), manager of AFIG Fund II (“Fund II” or the “Fund”) have finalized agreements to invest in First Atlantic Bank in Ghana a release received here late Tuesday announced.
The interest by AFIG which manages AFIG Fund II (“Fund II) also known as the Fund comes at a critical time when the Bank of Ghana has announced a 233.3 percent increase in the Minimum capital requirements of commercial banks in the country to 400 million Ghana cedis or 91.02 million U.S Dollars from the previous 120 million cedis or 27.3 million dollars.
“We are glad to have attracted the backing of AFIG Funds at this critical phase in our growth. This investment will go a long way in strengthening our capital base and will better position us to continue delivering excellent service to our customers. We also expect to benefit from AFIG Funds’ experience of investing in and building banks across Africa,” Karen Akiwumi-Tanoh, Chairman of the board of the Bank commented.
According to her, First Atlantic Bank had been engaged with AFIG Funds for several years and are delighted to have gained their confidence in the bank’s business model and prospects.
First Atlantic Bank, was originally set up 20 years ago as a merchant bank but has since 2011 become a full-service commercial bank proving a broad spectrum of banking services to clients and emerging as one of Ghana’s leading banks lately.
“We are pleased to build a partnership with a bank of this caliber, which has a diversified reach across key segments of the economy. This investment cements the longstanding relationship between both institutions,” Papa Madiaw Ndiaye, CEO of AFIG Funds said.
AFIG Funds registered in Mauritius and with an office in Dakar Senegal is a leading private equity fund management company with two funds under management, the Atlantic Coast Regional Fund, and AFIG Fund II.
Monday, Governor of the central bank, Ernest Addison expressed expectation that many of the operating 35 banks in Ghana would either seek larger investors from outside the country; merge or get swallowed by some of the bigger banks in the country, in the face of the new capital requirements.
He said the banks need larger portfolios in order to compete favorably in the growing competitive market space. Enditem
Source: Justice Lee Adobo