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| AFC shops for $2bn to raise Africa’s economy | |
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01 Dec 2006
The Africa Finance Corporation (AFC) has concluded arrangements to raise $2.0 billion to improve the status quo of the economy of Africa towards meeting Millennium Development Goals (MDGs). BLESSING ANARO It is hope that the move will help empower Africans to living better lives, instead of living in squalor. A document prepared by the Central Bank of Nigeria (CBN) in conjunction with KPMG professional services said there is considerable gap in meeting the funding needs of Africans, thus necessitating the collaboration of several countries to establish financial institutions with both developmental finance and investment banking objectives. Although the CBN has invested $500 million, the document said, the AFC is owned by private investors, commercial banks in Africa, central banks in Africa and other institutional investors. But for, the document says the issuer is the Africa Finance Corporation, while the CBN is the project sponsor. The authorized share capital is expected to be $2 billion divided into 2,000,000,000 ordinary shares of $1 each. For now, $1 billion ordinary shares of $1 each is being issued. At the end of the first issue, the document said the offer proceeds will be employed for the purposes of meeting pre-operational and start-up expenses. Specifically, it said $5.5 million will be pre-operational expenses, representing 0.5 percent of total initial $1 billion proceeds. Another $15.3 million, about 1.5 percent of total proceeds will be used to set up the head office of the corporation, while $979.2 million or 98 percent will be used as working capital. Unit of sale will be a minimum of 50,000 units and multiples of 1,000 thereafter at an offer price of $1 per unit. The document said the offer will open for six weeks effective 1 st December 2006. It added that the committee reserves the right to extend the offer. Business Day Nigeria |
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