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CBN Governor, Godwin Emefiele, Others Under Investigation For $300million Paid To Acquire Union Bank

EFCC, NFIU, ICPC and others have commenced an investigation into how Titan Trust Bank raised $300 million to complete its Union Bank acquisition.

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Union bank - Investors King

The Economic and Financial Crime Commission (EFCC) and the Nigerian Financial Intelligence Unit (NFIU) have commenced an investigation into how Titan Trust Bank founded in December 2018 raised $300 million to complete its Union Bank acquisition.

Sources quoted by SaharaReporters claimed EFCC, NFIU, the Department of State Services (DSS), the Independent Corrupt Practices Commission (ICPC) and other related commissions have commenced investigation into the deal.

“EFCC, DSS and NFIU are currently investigating Oramah over the loan given to Titan bank. Why the loan to Emefiele and others political exposed person? Though we believe nothing will happen to him because of his closeness to Mamman Daura. He just bought a house for Mamman Daura at George street, off Edgware road in London,” a senior intelligence officer stated.

Investors King had earlier reported that Titan Trust Bank will acquire an 89.4 percent equity stake of the bank from existing major investors, Atlas Mara and Union Global Partners Limited. Titan Trust Chairman, Tunde Lemo later disclosed that the bank has increased its stake to 93.4 percent. 

Union bank was established in Nigeria in 1917 as the local unit of British-owned Barclays Bank. This acquisition of a 104 years old bank by a bank established in 2018 came as a shocker to many people in the industry. 

Banking on its vast strength of digital banking, Titan Trust Bank later disclosed a grand ambition to mature into a Tier 1 bank in the next five years. If successful, Titan Bank would have disrupted a competitive circle of the five biggest banks (FUGAZ).

AfreximBank, otherwise known as Africa Import-Export Bank is significantly owned by African governments and their public institutions. 

Various sources have linked the ownership of Titan Bank to the CBN governor. This has made the controversial bank and its acquisition of Union Bank a deal of interest. 

Besides, the bank which was established on the 12th of December, 2018 and started full operation as a commercial national bank on the 26th of April, 2019 could not have the financial and operational muscle to acquire Union Bank if there were no vested interests. 

In 2019, Titan Bank recorded a profit of N644 million, and in 2020, its after-tax profit rose to N2.9 billion.

However, the 2021 audited financial statement of the bank showed it now worth over 3 trillion with only two active offices in Lagos. A development that many players in the banking industry have questioned. 

 

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Banking Sector

UBA America Strengthens Commercial Diplomacy, Hosts Diplomats, Others at World Bank Summit

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UBA

UBA America, the United States subsidiary of United Bank for Africa (UBA) Plc hosted diplomats, government officials and business leaders to a networking reception in partnership with the esteemed Business Council for International Understanding (BCIU) and the U.S. Department of States in Washington DC on Monday .

The event which was held on the sidelines of the ongoing IMF World Bank Spring Meetings was organised by the BCIU and US Department of State to enhance collaboration and fortify commercial diplomacy among nations, institutions and individuals.

Speaking during the event, UBA’s Group Managing Director/Chief Executive Officer, Oliver Alawuba, noted that the bank’s co-hosting of the event via its American subsidiary, underscores its commitment towards cultivating robust relationships within the development communities in the United States.

He said, “As a distinguished member of BCIU, a non-profit organisation providing customised commercial diplomacy services, UBA Group and UBA America share BCIU’s vision of actively pursuing strategic opportunities, contributing to global economic cooperation, deepening of economic diplomacy, facilitating ideas, forging partnerships, and adding value for all stakeholders.”.

“Our resolve to co-host this Networking Reception symbolises our dedication to fostering inclusive economic growth and partnership across borders. By leveraging platforms like this, we can collectively address shared challenges and seize opportunities for sustainable development,” he stated further.

BCIU is a non-profit Association comprising of policy experts, strategic advisors, and trade educators, and offers bespoke commercial diplomacy services to the world’s governments and leading organisations, from Fortune 100 companies to global investors and multilateral institutions.

Only last year, the CEO UBA America, Sola Yomi-Ajayi, was appointed to the Board of BCIU, where she collaborates with fellow board members to ensure the organisation operates in alignment with its by-laws and New York 501(c)3 non-profit legislation.

Yomi-Ajayi has been committed to nurturing long-term organisational growth and sustainability, thereby reinforcing the bond between UBA America, BCIU, and the broader international community.

UBA America is the United States subsidiary of United Bank for Africa (UBA) Plc, one of Africa’s leading financial institutions with presence in 20 African countries, as well as in the United Kingdom, France, and the United Arab Emirates. UBA America serves as a vital link between Africa and the global financial markets, offering a range of banking services tailored to meet the needs of individuals, businesses, and institutions.

As the only sub-Saharan African bank with an operational banking license in the U.S., UBA America is uniquely positioned to provide corporate banking services to North American institutions doing business with or in Africa.

UBA America delivers treasury, trade finance, and correspondent banking solutions to sovereign and central banks, financial institutions, SMEs, foundations, and multilateral and development organizations. Leveraging its knowledge, capacity, and unique position as part of an international banking group, the Bank seeks to provide exceptional value to our customers around the world.

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Banking Sector

Ecobank Pays Off $500 Million Eurobond

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Ecobank - Investors King

Ecobank Transnational Incorporated (ETI) has announced the successful repayment of its $500 million Eurobond.

The Eurobond, issued in April 2019 with a coupon rate of 9.5%, matured on April 18, 2024, and was listed on the London Stock Exchange.

The repayment, totaling $524 million inclusive of principal and interest, underscores Ecobank’s commitment to financial prudence and investor confidence.

The bond garnered substantial support from a diverse group of global investors, including development banks, FMO, and Proparco, serving as anchor investors.

Mr. Ayo Adepoju, Ecobank’s Group CFO, emphasized the significance of the inaugural bond in broadening the institution’s investor base and enhancing its visibility in global capital markets.

Despite challenges in the operating environment, such as disruptions in the global supply chain and financial markets, Ecobank has demonstrated resilience through robust liquidity, a solid balance sheet, and effective leadership.

This repayment marks Ecobank’s commitment to fulfilling its financial obligations and maintaining strong relationships with investors.

While this Eurobond repayment closes a significant chapter, it also reflects Ecobank’s ongoing efforts to navigate challenges and sustain its position as a leading financial institution in Africa.

As Ecobank clears this debt, it reinforces its reputation for financial stability and prudent management, setting a positive trajectory for future growth and continued success in the dynamic global financial landscape.

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Finance

SEC to Guard Against Illicit Funds Influx Amid Banking Recapitalisation

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Securities and Exchange Commission

In response to the recent banking recapitalization exercise announced by the Central Bank of Nigeria (CBN), the Securities and Exchange Commission (SEC) has reiterated its commitment to safeguarding the integrity of the capital market against the influx of illicit funds.

This announcement came during a symposium organized by the Association of Capital Market Academics of Nigeria, where the Executive Director (Operations) of SEC, Dayo Obisan, addressed stakeholders on the implications of the banking sector recapitalization for the Nigerian capital market.

Obisan expressed the commission’s determination to collaborate with stakeholders to prevent the entry of laundered funds into the capital market.

He stressed the need for fund verification exercises to ensure transparency and accountability in capital inflows.

While acknowledging that fund verification is not typically within SEC’s purview, Obisan stated the commission’s willingness to collaborate with other regulators to prevent the entry of illicit funds into the market.

He said it is important to engage institutions such as the Central Bank of Nigeria (CBN) and the Nigerian Financial Intelligence Unit (NFIU) in verifying the legitimacy of funds entering the market.

Obisan also announced regulatory engagements aimed at enhancing the quality of filings and ensuring compliance with anti-money laundering regulations. These engagements seek to streamline the application process and mitigate the risk of illicit fund inflows from the onset.

Meanwhile, the President of the Chartered Institute of Stockbrokers, Oluwole Adeosun, maintained that the capital market can support the fresh capitalisation exercise.

He said, “The market is able and has expanded in the last ten years to be able to withstand any challenges with this capital raising exercise. It is important to know that investors have started to position themselves in the stocks of Tier 1 banks with the announcement of the planned recapitalisation last year.”

Adeosun also called on the banks to consider other options beyond the right issues, as had been seen in recent days in the sector, given the size of the funds needed to be raised as well as to bring in a fresh set of investors into the market.

“There should be more than a rights issue. We believe that some of them should go by private offer and public offer because the capital is huge so that we can bring in more shareholders into the market. We believe it is another opportunity for Gen Zs and millennial investors to come into the market.

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