Pan African lender woos sophisticated Kenyan investors

 

African Export-Import Bank

Kenyans have a chance to own part of one of the biggest lenders on the continent through global depository receipts.

Egypt-based African Export-Import Bank (Afreximbank) is offering Sh30.9 billion worth of secondary equity through a private placement targeting pension funds and sophisticated investors.

Launched in July, the capital raising is closing in the next two weeks and offers returns above five per cent, including dividends and capital gains.

“The depository receipt allows firms to raise money with an equity instrument with synthetic rights that mimic ordinary shares in terms of capital gains and dividends,” said the Afreximbank manager for equity mobilisation, Morciad Chaparira while pitching to pension and fund managers.

Minimum investment

Afreximbank, a trade and industry lender, is offering 69,770,000 depository receipts (synthetic shares) each valued at Sh443.55 ($4.30) with a minimum investment of Sh3 million ($30,000) arranged by the Commercial Bank of Africa.

The value of the receipts is pegged at the net asset value of the bank as at 2016 at $43,000 per share, which the bank says has edged up to $45,000 with the half year revenues offering an upside to investors.

The depository receipt, listed on the Mauritius stock exchange, is also tax-free and will begin trading on October 4.

Afreximbank Executive Vice President George Elombi said the offer has already attracted almost double $100 million (Sh10.3 billion) in markets across Africa, Europe Asia, and the Americas.

If Afreximbank raises the cash, it will boost shareholder funds raised to $500 million (Sh51 billion) and allow it securitised lending of up to 10 times the value.