PCM Capital’s West Africa Emerging Markets Growth Fund, a €38.5 million regional private equity fund, is making an undisclosed investment in First Atlantic Bank Ghana. The investment, which is being structured as a combined private placement and rights issue gives AA Global Investments, the SPV through which the investment is being made, a 15% share in the Ghanaian bank as well as a board seat.
First Atlantic Bank was set up in 1995, and provides universal banking and brokering services to a slate of retail and corporate clients through a network of 19 branches and service agencies across Ghana. the past 3 years, the bank has restructured and rebranded itself, and will use this investment to shore up its capital base, as well as fund its plans to expand its branch network and information technology platform.
According Mawuli Ababio, a partner at PCM Capital Partners who worked on the transaction, the deal gives WAEMGF exposure to “a fast growing institution…”. Other shareholders of the bank are Lagos-based Kedari Capital and a group of local investors.
WAEMGF, which looks to provide growth and expansion capital to companies with potential to create significant value in the energy, financial services, telecoms, multimedia, ICT, agro business and distribution sectors, is backed by the South Africa Government Employee Pension Fund through the Public Investment Corporation, the African Development Bank, the ECOWAS Investment and Development Bank and a number of other regional financial services institutions.