The setting was at the Sun Table Bay Hotel in Cape Town City. Here the Mauritian delegation presented as a business forum on the new Afri- Centered Bank that came about through state owned banks within Africa Called Afreximbank.
- Afreximbank broken down is African exports and imports bank
- This bank is for the purpose of trade between African countries. Basically the idea is that all trade should be facilitated in Africa by Africans.
- The aim here is that Africa’s raw materials get cultivated, produced and processed in Africa.
- This platform is so that Africans will exports less of their raw materials and then import it as a finished product.
- Hence the idea of the bank is that everything to do with trade, processing from beginning to end, manufacturing and support of infrastructure is for Afreximbank to facilitate.
- It is to support the entire supply chain system but within Africa. And Mauritius will be the housing facilitator of this forum.
- Further to the Mauritians, there are also 42 other African countries that has signed on and are members of this bank.
- The bank is centrally state owned meaning that every country that is a member has got their state banks as the funder to this bank. Therein lying the security of this platform
- This is a good thing for importer, exporters, clearing and forwarding agents and every other profession that belongs to the supply chain industry.
- To become a member there is various monetary rankings/ levels that you would qualify for and depending on your assignment level, Mauritius as a country has decided that you can gain permeant citizenship with becoming a member as an incentive.
- This is also offered with the added bonus of qualifying for tax holidays under the agreement of this permanent residency.
- To invest in this bank seems very attractive and the fact that they are solely there to facilitate trade between African countries makes the deal that much sweeter.
As a recap, the main terms of the issue are as follows:
|Issuer||African Export-Import Bank (Afreximbank)|
|Issuer’s Credit Rating||BBB+, Stable (GCR), Baa1/Stable (Moody’s), BBB-/Negative (Fitch),|
|Issue Amount||USD 300m|
|Minimum Subscription Amount||USD 30,000|
|Issue Price per Depositary Receipt||USD 4.30|
|Dividends||Holders of DRs will be entitled to receive dividends as Class D Afreximbank shareholders|
|Target Dividend Yield||5% (Based on 1x price to book ratio per share)|
|Listing of the DRs||Official list of the Stock Exchange of Mauritius|
|Clearing & Settlement||Transfers of the DRs will be effected only through Central Depository & Settlement Co. Ltd (CDS), Mauritius|
The main contacts and speakers
|Mohinee Adnath||Relationship Manager, Private Banking|
|Pravish Halkoree||Portfolio Manager, Private Wealth|
|Dharmesh Mohadewo||Head Trader, SBM Securities Ltd|
|Anoushka Bhuttoo||Head, SBM Securities Ltd|