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Tag: Benedict Oramah

  • AfCFTA must be free and fair, Buhari insists

    …Adeosun elected Afreximbank Chairman

    Nigeria’s Finance Minister, Kemi Adeosun has been elected Chairman of the board of Africa Export Import bank (Afreximbank).

    Adeosun was elected chairman on Saturday in Abuja at the bank’s Annual General Meeting declared open by President Muhammadu Buhari. She will chair the bank for one year.

    Speaking at the opening ceremony of the AGM, President Muhammadu Buhari noted that Africa’s journey to prosperity “can only be achieved by supporting inclusive and sustainable projects. We must therefore continue to support Afreximbank to deliver on this mandate.”

    President Buhari as expected spoke on the much anticipated Nigeria’s signing of the Africa Continental Free Trade Agreement (AfCFTA) stating that, his administration will work towards a fair trade agreement with the rest of the continent.

    According to President Buhari, “significant progress has been made in these consultations. The team has met key stakeholders across our six geo-political zones. The responses have been diverse as would be expected. However, one clear message has emerged which is that any trade agreement must be both “free’ and ‘fair’. This fairness is achievable and we will work towards it.”

    He noted that “no nation can survive on its own. Trading is important and the terms of trade are important. Therefore, there is a need to ensure our national interests as well as our regional and international obligations are balanced.”

    His administration he added “has adopted a policy of inclusive economic growth and is determined to attain this by reducing our over reliance on crude oil. To date, we have invested aggressively in infrastructure to support our growth potential in agriculture and solid minerals. We are alsoempowering many Nigerian entrepreneurs in the entertainment and digital economies to mention a few.”

    Government he said will stand to enable those who can help themselves “but is equally committed to supporting those who can’t.” A decision that has forced the government to introduced “our Social Investment Program which is changing lives through, school feeding, conditional cash transfers and youth employment, among others.”

    Read Also: Buhari condoles with Japan over deaths

    Buhari informed the international gathering that “Nigeria has a very unique and important role to play. We are a vast nation of nearly 200 million people, with diversity of language, culture, natural endowments and aspirations. However what we all have in common is that at all levels, Nigeria is a trading nation.”

    The highlight of the day’s activities was the combined signing of the Memorandum of Understanding (MoU) between Afreximbank and Nigeria’s Bank of Industry (BoI) and Dangote group to finance his refinery valued at $750 million and $650 million respectively.

    Addressing the gathering, Afreximbank President, Dr. Benedict Oramah disclosed that Afreximbank has created a specialized institution, a fully owned subsidiary called the ‘’Fund for Africa’s Export Development” (FUNFED)”.

    The objective of the fund he said “is to contribute towards expanding the share of manufactured and service exports in Africa’s total exports by attracting appropriate FDI flows into those dynamic sectors.”

    Afreximbank’s initial investment commitment in the FUND amounts to US$100 million which is expected to attract additional investments to bring funds under management to US$1 billion in the near term.

    Speaking on the bank’s financial performance for the year end, 2017, Oramah stated that “revenues grew strongly by 25 percent to US$645 million, driven by healthy interest income on average assets of about US$14 billion, of which about 70% were loans and advances.”

    Net income as a result rose by 34 percent to reach a new record high of US$220 million.

    Oramah noted that “despite the fact that loans dropped by 18% at year- end following the repayment of about 3.2 billion in Countercyclical Trade Liquidity Facility loans, that fell due in December, Non-performing loans ratio only rose marginally from 2.4 percent to 2.5 percent.”

    The strong capital injection and internal capital generation ensured that the Bank ended the financial year with Shareholders’ Funds rising by 31% to US$2.1 billion, bringing combined shareholders’ fund and contingent capital to close to US$3 billion, up by 33% from 2016; Capital Adequacy ratio was at 26%, compared to 23% in 2017.

    Liquidity he told shareholders “was very strong with cash and due from banks reaching US$3.2 billion, up 153% from US$1.3 billion in 2016. Liquidity cover ratio was very strong at 185%, above our target of 105%. Access to debt markets was quite diversified with African sources of liquidity maintaining their importance in 2017 in line with our strategic goals.”

    Based on the very good performance, the Board of Afreximbank recommended a dividend payment amounting to a dividend yield of 5% fully paid shares.

  • Afreximbank, finance professionals to meet on structured trade finance

    Afreximbank, finance professionals to meet on structured trade finance

    The African Export-Import Bank’s (Afreximbank) says it is committed to boosting African trade by enhancing the capacity of African  professionals on international trade and trade-related project financing issues.

    The bank said that as part of its efforts in this regard, it is organising a workshop for stakeholders on Structured Trade Finance in Cape Verde from Nov. 6 to Nov. 9.

    The bank said in a statement in Lagos that the workshop was being organised in collaboration with the Ministry of Finance of Cape Verde.

    The statement quoted Dr Benedict Oramah, President of Afreximbank, as saying that the workshop was also an important platform for African bankers and other trade finance practitioners to make major contributions that would boost African trade.

    According to Oramah, the 2017 seminar, the 17th in the annual series, will be part of Afreximbank’s effort to prepare African banks and financial institutions to meet the trade finance needs of the continent.

    He urged other professionals interested in participating in the event to visit the bank’s  Website (www.afreximbank.com).

    The four-day event will focus on “Receivables and Payables Finance” and “Syndications and Agency’’ and a workshop on factoring.

    African Export-Import Bank (Afreximbank) is a foremost pan-African multilateral financial institution devoted to financing and promoting intra- and extra-African trade.

    Since 1994, it has approved more than $51 billion in credit facilities for African businesses.

    Afreximbank had total assets of $11.7 billion as at Dec. 31, 2016 and is rated BBB+ (GCR), Baa1 (Moody’s), and BBB- (Fitch).

    The bank has its headquarters in Cairo.

  • Afreximbank introduces $300m equity offering to Nigerian investors

    Afreximbank introduces $300m equity offering to Nigerian investors

    The African Export-Import Bank (Afreximbank) on Thursday in Lagos met with leading Nigerian investors to push for strong participation in the bank’s $300 million equity offering.

    Dr Benedict Oramah, the President of Afreximbank, told the investors that the equity offering would be issued through depository receipts backed by its Class “D” shares for new and old investors in the bank.

    The News Agency of Nigeria reports that Class “D” shareholders can be any investor.

    Oramah said that the aim was to generate between $100 million and $300 million as part of the bank’s target to mobilise up to $1 billion to boost African trade over the next five years.

    He told investors that the issuance of the receipts was to enhance the bank’s capitalisation so as to significantly narrow the trade financing gap in Africa, currently estimated at $120 billion annually.

    He said that the receipts would be listed on the Stock Exchange of Mauritius and managed by SBM Asset Managers as lead arranger.

    According to him, the issuance also represents an opportunity for Afreximbank to diversify its shareholder base by enabling investors in Africa and beyond who have not yet invested in the bank to do so.

    He said that Afreximbank had consistently delivered development impact in its member countries including Nigeria where virtually every banking institution had benefited from its support.

    Kee Chong Li Kwong Wing, the Chairman of SBM Group, said that the decision to use Mauritius was due to the country’s highly developed financial services system and its experience in similar investment drives.

    Li said that as part of its support for the Afreximbank depository receipts issue, the government of Mauritius planned to grant permanent residency to investors putting in up to $500,000 into the offer.

    According to him, the minimum investment amount is $30,000.

    Those present at the event include Aliko Dangote, President of the Dangote Group, Gov. Godwin Obaseki of Edo, former Gov. Donald Duke of Cross River; a representative of  Oba of Lagos and many others.

    Afreximbank’s 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, Class “C” shareholders are non-African investors’ mostly international banks and export credit agencies.

    Afreximbank is a foremost pan-African multilateral financial institution devoted to financing and promoting intra- and extra-African trade.

    The bank was established in October 1993 by African governments, African private and institutional investors as well as non-African investors.

    Its two basic constitutive documents are the Establishment Agreement which gives it the status of an international organisation, and the Charter which governs its corporate structure and operations.

    Since 1994, it has approved more than $51 billion in credit facilities for African businesses including about $10.3 billion in 2016.

    Afreximbank had total assets of $11.7 billion as at Dec. 31, 2016 and is rated BBB+ (GCR), Baa1 (Moody’s) and BBB- (Fitch).

    The Bank has its headquarters in Cairo.

  • Afreximbank opens shareholding to investing public

    Afreximbank opens shareholding to investing public

    Supranational trade finance bank, African Export-Import Bank (Afreximbank), says it is opening its shareholding to the investing public with a 300 million dollars equity offering through the issuance of depositary receipts.

    A statement by the bank’s Head of Communications, Mr Obi Emekekwue, on Thursday said that the equity offering would be held under its Class “D” shares.

    The News Agency of Nigeria (NAN) reports that the bank’s Class “D” are fully paid shares which can be held by any investor.

    The deal, whose listing has been approved on the Stock Exchange of Mauritius, subject to raising the funds by Sept. 30, is being handled by SBM Group, a leader in the financial sector in Mauritius.

    The equity offering is the first time a supranational bank is issuing depositary receipts through an African stock exchange.

    Dr Benedict Oramah, the President of Afreximbank, said that the aim was to enhance the bank’s capitalisation in order to significantly narrow the trade financing gap in Africa currently estimated at 120 billion dollars annually.

    Oramah said the seed funds would enable the bank meet its strategic objective of growing intra-African trade in all regions of the continent, including island economies.

    He said the bank had chosen Mauritius because it had conducive regulatory framework for this innovative equity offering.

    “On the other hand, SBM possesses the competencies, investor contacts, and support capabilities for the issuance of the depositary receipts.

    “The depositary receipts issuance represents an opportunity for Afreximbank to diversify its shareholder base by enabling investors in Africa and beyond who have not yet invested in the bank to do so.

    “It is also to strengthen Africa’s premier trade finance institution whose interventions in its various member countries have created acknowledged developmental impacts across the continent,” he said.

    Oramah said he was optimistic that the novel issuance would further deepen Africa’s capital markets and pave the way for similar issuances by other multilaterals.

    Kee Chong Li Kwong Wing, Chairman of SBM Holdings Ltd, said it was a privilege for SBM to have been saddled with the responsibility to execute such an important transaction.

    Li said it was high time global investors tapped into Africa’s huge potential by investing in Africa.

    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.

    The bank’s two basic constitutive documents are the Establishment Agreement which gives it the status of an international organisation and the Charter which governs its corporate structure and operations.

    Since 1994, it has approved more than $51 billion in credit facilities for African businesses, including about $10.3 billion in 2016.

    Afreximbank had total assets of 11.7 billion dollars as at Dec. 31, 2016 and is rated BBB+ (GCR), Baa1 (Moody’s), and BBB- (Fitch).

    The Bank is headquartered in Cairo.

  • Areximbank named African Banker of the Year

    Areximbank named African Banker of the Year

     Dr Benedict Oramah, the President of African Export-Import Bank (Afreximbank), has been named African Banker of the Year at the African Banker Awards 2017 ceremony in India.

    A statement by Afreximbank in Lagos on Wednesday said that the award was presented on Tuesday at a ceremony on the sidelines of the Annual Meetings of African Development Bank.

    The bank said that the award was given to a banker who, through leadership and vision, had overseen strong financial performance within his or her organisation.

    “Such a banker would also have successfully guided that institution to new heights in the industry”.

    In his acceptance speech, Oramah, a Nigerian, said that he was able to win the award as a result of the dedicated work of the staff of Afreximbank.

    He said the staff had put in sustained efforts and made sacrifices to enable the bank continue performing in order to meet the challenges confronting Africa in the area of trade.

    Other nominees for the award included Segun Agbaje of GTB in Nigeria, Jeremy Awori of Barclays Bank in Kenya, Dr Charles Kimei of CRDB Bank in Tanzania, James Mwangi of Equity Bank in Kenya and Joshua Nyamweya Olgara of KCB in Kenya.

    Also at the ceremony, Guaranty Trust Bank of Nigeria was named African Bank of the Year, Rameswurlall Basant Roi, Governor of Central Bank of Mauritius, was named Central Bank Governor of the Year, while Rand Merchant Bank in South Africa was named Investment Bank of the Year.

    Other winners included Equity Bank of Kenya as the Best Retail Bank, MasterCard and Ecobank were named for Innovation in Banking.

    Waheed Olagunju of Bank of Industry in Nigeria was named African Banker Icon, while Amadou Ba, Minister of Finance of Senegal was named the Finance Minister of the Year.

    According to Afreximbank, the African Banker Awards were introduced to recognise reforms, rapid modernisation and expansion of banking and finance in Africa.

    “The awards reward the outstanding achievements of companies and individuals that have changed the perception of Africa’s potentials in domestic and international markets”.

     

  • Afreximbank, Ecobank sign MoU

    The African Export-Import Bank (Afreximbank) says it has signed a Memorandum of understanding (MOU) with Ecobank Transnational Incorporated (ETI), the parent company of Ecobank Group, on investment financing.

    A statement by the bank on Wednesday quoted Dr Benedict Oramah, the President of Afreximbank, as saying that the collaboration would open more opportunities for African businesses to access the much-needed financing.

    Oramah said that inadequate access to trade finance remained one of the greatest obstacles to Africa’s economic development.

    “We are very proud at the opportunity to work with a pan-African financial institution like Ecobank to deliver on our shared goal of enhancing access to trade finance in Africa,” he said.

    Oramah said that under the agreement, Afreximbank and Ecobank would design joint innovative and tailor-made financial instruments and solutions for strategic public sector institutions as well as small and medium enterprises.

    He said the aim was to enable businesses to participate effectively in the production of value added goods and services in national, regional and continental value chains.

    According to him, the initiative will create a 500 million dollars programme dedicated to financing trade among Afreximbank member countries.

    Ade Ayeyemi, the Chief Executive of Ecobank Group, lauded the collaboration and  said that the initiative  was to create more efficient ways of channelling trade finance towards supporting growth of intra-African trade and industrialisation.

    Afreximbank is the foremost pan-African multilateral financial institution devoted to financing and promoting intra- and extra-African trade.

    The bank was established in October 1993 by African governments, African private and institutional investors, and non-African investors.

    It has approved more than 51 billion dollars in credit facilities for African businesses since 1994, including about10.3 billion dollars in 2016.

    Afreximbank had total assets of $9.4 billion as at April 30, 2016 and is rated BBB- (Fitch) and Baa1 (Moody’s). The Bank is headquartered in Cairo.