(Ecofin Agency) - Fidelity Bank Nigeria Plc has acquired Union Bank UK, supported by a $40 million intra-African investment facility from Afreximbank. The financing, announced yesterday facilitated both the acquisition and recapitalization of Union Bank UK by the Nigerian commercial bank.

Afreximbank provided $40 million in total, with an initial $20 million used to partially refinance the acquisition of Union Bank UK's shares. The remaining amount bolstered Union Bank UK's capital base through additional injections.

The acquisition was completed nearly a year ago, following approvals from the Central Bank of Nigeria and the UK Prudential Regulation Authority in July 2023. Union Bank UK was rebranded as FidBank UK in February 2024 upon integration into Fidelity Bank's operations, diversifying its revenue base and expanding service offerings beyond Nigeria, as noted in Fidelity Bank's 2023 annual report.

"The refinancing of the Union Bank (UK) acquisition by Afreximbank will unlock additional value and help create a scalable and more sustaining service franchise that will support trade businesses in Africa and diaspora banking. We are very thankful to Afreximbank for supporting our expansionary initiatives for international growth,” said Nneka Onyeali-Ikpe, MD/CEO of Fidelity Bank.

FidBank marks Fidelity Bank's first entry into the international banking market.