News Ticker

AFIG Funds backs Ghana’s First Atlantic Bank

Advanced Finance and Investment Group, better known as AFIG Funds, has made its second financial services sector deal in two weeks. The private equity equity fund management company announced it has finalized an agreement to make an investment in First Atlantic Bank. The investment capital will be used to bolster the Bank’s capital base, as well as help support its growth plans. Terms of the deal, which is subject to regulatory approval, remain undisclosed.

The transaction is being done on behalf of AFIG Fund II, which according to the private equity firm’s website, is targeting $250 million to invest in businesses that exhibit the potential to become regional “blue chips” in West, Central and East Africa. Typical investment ticket sizes for the sector-agnostic fund, which held its first close in July 2016,  range between $5 million and $20 million.

Commenting on the transaction, AFIG Funds’ CEO, Papa Madiaw Ndiaye said “We are pleased to build a partnership with a bank of this caliber, which has a diversified reach across key segments of the economy….'” adding that the firm believes that “‘First Atlantic Bank has the capacity to become one of the leading banks locally and possibly in West Africa, thanks to the quality of ots board and management team…”

Starting life as a Merchant Bank over 20 years ago, First Atlantic Bank switched its focus to become a full-scale commercial bank in 2011, expanding both its product and service portfolio as well as its branch network to become one of Ghana’s more prominent banking companies. As well as the investment capital, the Bank expects to be able to leverage AFIG Funds’ experience of investing in and building banks across Africa.

Last week, AFIG Funds announced it was making an undisclosed investment in Nigeria’s FSDH Merchant Bank, a financial servcies company that offers the market a range of services including merchant, corporate and investment banking solutions as well as asset and pension fund management. The transaction was executed on behalf of the AFIG Funds’ first fund, the Atlantic Coast Regional Fund.


Leave a comment

Your email address will not be published.