SBM Invitation – Afreximbank Depository Receipts

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

 

Contact Name
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