Afreximbank opens KSh31bn shareholding to private investors

Supranational trade finance bank, African Export-Import Bank (Afreximbank), has opened  its shareholding to private investors through the issuance of KSh31.1 billion ($300 million) in equity through Depositary Receipts backed by Class D shares.

The bank will be offering 6977 fully paid up class D shares in form of 69,770,000 Depository Receipts.The minimum investment will be USD 30,000.

This is aimed at enabling the bank facilitate and expand levels of intra and extra-African trade, in line with its overall strategy and long-term objectives.

The bank’s Class “D” are fully paid shares which can be held by any investor.

Currently, Afrexim bank has 136 shareholders divided into class A, B, C and the newly introduced class D.

Afreximbank shareholders are a four-tier mix of public and private entities with Class “A” consisting of African states, African central banks and African public institutions.

Class “B” is made up of African financial institutions and African private investors, while Class “C” consist of non-African investors mostly international banks and export credit agencies.
Morciard Chaparira, Manager Equity Mobilization Afrexim Bank, “The the Depository Receipts is the first in Africa, no other bank has done this.”

“The depositary receipts issuance represents an opportunity for Afreximbank to diversify its shareholder base by enabling investors in Africa and beyond,” said Benedict Oramah, President of Afreximbank.

The funds raised is aimed at improving trade among African countries,” Dr George Elombi VP Afrexim Bank.

The offer is open until Sept. 22 and they will be listed on stock exchange of Mauritius on Oct. 4, allowing secondary trading in the depositary receipts to commence.