National Bank of Canada (NBC), the sixth largest bank in Canada, has acquired 9.5% stake in AfrAsia Bank - its first investment deal in Africa.

Louis Vachon, President and CEO of National Bank of Canada, said: “We believe its fast-growing and emerging economies offer attractive market opportunities. We are pleased to partner with AfrAsia Bank and have the opportunity to use our expertise and resources to contribute to its development,” he said.

AfrAsia Bank’s total assets at the end of June 2014 were recorded at Rs47.2bn.

AfrAsia Bank aims to grow from having clients in 104 countries to becoming one of the biggest players in Africa and expanding in European as well as American market.

AfrAsia Bank said having NBC as a shareholder would enhance its growth plans and strategic vision which has been clearly validated by favourable responses from existing investors, including Singaporean private equity firm, Intrasia Capital, and French development institution PROPARCO.

James Benoit, CEO of AfrAsia Bank, said: “We are honoured to partner with such a renowned financial institution as National Bank of Canada. This partnership will give us an impetus for further growth and reinforce the position of AfrAsia Bank in international markets.”

“With National Bank of Canada, we will continue to deliver on our corporate philosophy to build bridges between Africa, Asia and the rest of the world while using Mauritius as an International financial centre,” he added.

AfrAsia Bank serves the Africa-Asia trade corridor, combining its strengths and expertise in four core divisions: private banking and wealth management, corporate and investment banking, global business and treasury.

Since inception, the Bank has expanded through a combination of substantial organic growth and a series of strategic acquisitions, with core activities in Mauritius, South Africa, UK and Zimbabwe.

Karen Leggett, Executive Vice-President – Marketing and Corporate Strategy at National Bank of Canada, said: “AfrAsia Bank’s business model, broad diversification of activities and growth potential are key assets that contributed to our decision to invest.”

“Growing trade between Africa and the rest of the world, notably Asia, is fuelling investments across the African continent and AfrAsia Bank is well positioned to benefit from this trend. We look forward to being a part of its future,” she added.

NBC is an integrated provider of financial services to retail, commercial, corporate and institutional clients.
It has some 20,000 employees and 2.4 million clients and offers a complete range of services, including banking and investment solutions, securities brokerage, insurance and wealth management.