9th Oct 2019 08:27
(Alliance News) - African Export-Import Bank said Wednesday it is considering an initial public offering of global depository receipts which will trade on the London Stock Exchange's Main Market.
The bank, also known as Afreximbank, exists "to facilitate, promote and expand intra- and extra- African trade". It is mulling an IPO of GDRs, which represent Class D ordinary shares in the bank, and would have a standard listing in London.
Afreximbank said its total assets amount to USD15.4 billion and it registered 20% compound annual growth in gross loans between 2015 and the first half of 2019, plus a 12% return on average equity in 2018. For the six months ended June 30, the bank made a USD137.6 million profit.
JP Morgan Securities PLC and HSBC Bank PLC will be joint global coordinators and joint bookrunners for the IPO.
"Afreximbank is very much at the epicentre of Africa's trade, which is expected to grow rapidly," President Benedict Oramah said. "This growth will be driven by the enactment of [the African Continental Free Trade Area] that will create an integrated market of 1.2 billion people, widespread urbanization, favourable demographics and rising investments. We are in a key position to leverage our existing relationships with the African Union and its 55 member countries to provide a platform for trade and investment flows across the continent.
"Our focus on technology and operational excellence has ensured we have a robust and growing balance sheet and can sustain profitability. We are excited by Africa's trade and economic prospects, particularly as we implement the Bank's flagship initiative, the Pan African Payment & Settlement System, aimed at boosting intra-regional trade. Afreximbank is well placed to capitalize on the opening up of trade across the continent and, with our experienced management team, we are confident we can deliver value for shareholders and customers."
On Tuesday, the Financial Times reported that London had seen the fewest companies going public in the third quarter in a decade in the third quarter of 2019. The FT cited research from financial consultancy group EY which showed only 4 companies launched initial public offerings in London between July and September, compared with 15 in the previous quarter.
By Anna Farley; [email protected]
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