Titan Trust Bank secures $300mn financing to support acquisition of Union Bank

Specifically, the recently disbursed financing will complement the funds required for the proposed acquisition, just as TTB says it will enhance the competitive dynamics of the Nigerian banking sector while maintaining confidence in the country’s financial services and broader financial stability.

Afreximbank’s financial support enables TTB to secure the acquisition of a well-capitalised bank with an extensive network, helping it to better serve vital economic activities of the public sector, companies, and small and medium-sized enterprises.

A member of the Tropical General Investment (TGI) Group – a pan-African group with diversified investments across seven African countries in various industries and a large network of origination, distribution, and supply chain hubs, TTB will leverage the acquisition of UBN to enhance its capacity to capitalize on the unparalleled opportunities presented by the African Continental Free Trade Area (AfCFTA).

Afreximbank will continue to support the newly merged entity in trade finance to promote intra- and extra-African trade through its broad range of programmes and initiatives, including the Afreximbank Trade Facilitation Programmes (AfTRAF) and AfPAY, the Bank’s international payment services.

The development impact of the acquisition is immense as TTB will leverage the merged entity to provide financing of about $3 billion over the medium term of which over US$600 million will directly support intra-regional trade finance.

Commenting on the transaction, Benedict Oramah, President and Chairman of the Board of Directors of Afreximbank, emphasised the Bank’s commitment to strengthening the position of indigenous financial institutions, thereby increasing Africa’s control over its financial markets and creating greater economic resilience for the continent.

“As international capital retreats from Africa, we must redouble our efforts to build an effective and resilient financial services sector on the continent, committed to intra-African trade and investments and the development of regional value chains.

“Afreximbank is confident that the transaction will engender confidence in the Nigerian financial system, attract additional capital investments and support the financial inclusion of small-scale enterprises, women-led businesses, youth enterprises and start-ups who are critical to the successful implementation of the AfCFTA.”

Mudassir Amray, the Managing Director and CEO of Titan Trust Bank, thanked Afreximbank for its exceptional support throughout the transaction. He further commended the Afreximbank team for its professionalism and dedication which led to the successful completion of this landmark transaction in a record time.

He added that “Afreximbank is one of a handful of organisations that remain bullish in Africa in this period of global uncertainty. The newly merged entity will continue to work with Afreximbank to support businesses to promote intra- African trade.”