Titan Trust Bank, a two-year-old financial services provider associated with Dutch-Nigerian billionaire businessman Cornelius Vink, has received a $300-million Intra-African Investment Financing Facility from the African Export-Import Bank (Afreximbank).
Titan Trust Bank is one of many subsidiaries of Tropical Genera Investment (TGI) Group, a leading conglomerate led by Cornelius Vink, the businessman who sold Nigerian consumer goods company CHI Limited to Coca-Cola for $1 billion in 2019.
The $300-million Intra-African Investment Financing Facility that Titan Trust Bank secured from the pan-African multilateral trade finance institution will be used to support its acquisition of a majority stake in Union Bank Plc in Nigeria.
The recent action follows the execution of a share sale and purchase agreement between Titan Trust Bank and Union Bank’s majority shareholders, Union Global Partners Limited and Atlas Mara Limited, as well as its minority shareholders, which resulted in the transfer of 93.41 percent of Union Bank’s issued share capital to Titan Trust Bank in a deal worth N191 billion ($458.3 million).
Benedict Oramah, president and chairman of the board of directors of Afreximbank, stated on Monday that the funding agreement will give Africa more control over its financial markets by improving the competitive dynamics of the Nigerian banking market, while maintaining confidence in the country’s financial services and overall financial stability.
“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 investment and the development of regional value chains,” he said.
Oramah added that Afreximbank is confident that Titan Trust Bank’s acquisition of Union Bank will boost confidence in the Nigerian financial system and attract additional capital investments, as it will support the financial inclusion of small-scale enterprises, women-led businesses, youth enterprises, and start-ups, which are critical to the AfCFTA’s successful implementation.
