The African Export-Import Bank (AFREXIM), according to Bloomberg is concluding plans to raise funds from the Nigerian Stock Exchange, and two other exchanges. The bank in November last year obtained a $200 million loan from a consortium of Japanese banks, followed by a $100 million financing agreement with the Islamic Corporation for the Development of the Private sector (ICD) to promote SMEs in Shariah-compliant countries.

Details of the fundraiser

The fundraising, according to the bank is scheduled to take place in the third quarter of 2018, in other words between July-September 2018. The bank has not disclosed what proportion of funds will be raised on the NSE. Listing on the two other exchanges have not been finalized

In addition to the capital raise, the bank will be listing 67 million depository receipts. A depository receipt is a certificate issued by a bank representing ownership of a company’s shares. The price of a depository receipt is based on the value of the underlying share but trades independently of it.

Global depository receipts, give investors the ability to invest in a company, without having to bother with differences in tax and trading regulations. They also give the issuer increased visibility.

How both parties benefit

The bank will be able to raise additional capital which it will channel towards lending. Afrexim in June last year, provided loans to several prominent African businesses including the Dangote Group and Heirs Holdings. A list will also help in deepening the NSE and encourage other multilateral institutions to list.

African Export-Import Bank (Afrexim) Bank was established in October 1993, by African governments, private and institutional investors as well as non-African investors for the purpose of financing and promoting both intra-African trade and extra African trade. The bank has its headquarters in Cairo (Egypt), and branches in Harare, Abidjan, Afrexim has an issued capital of $5 billion.

Onome Ohwovoriole has a degree in Economics and Statistics from the University of Benin and prior to joining Nairametrics in December 2016 as Lead Analyst had stints in Publishing, Automobile Services, Entertainment and Leadership Training. He covers companies in the Nigerian corporate space, especially those listed on the Nigerian Stock Exchange (NSE). He also has a keen interest in new frontiers like Cryptocurrencies and Fintech. In his spare time, he loves to read books on finance, fiction as well as keep up with happenings in the world of international diplomacy. You can contact him via


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