WAEMGF backs First Atlantic Bank Ghana
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The West Africa Emerging Markets Growth Fund (WAEMGF), managed by PCM Capital Partners, has invested in First Atlantic Bank Ghana, a full-scale commercial bank with over 20 years’ experience in the Ghanaian banking industry.
The West Africa Emerging Markets Growth Fund (WAEMGF), managed by PCM Capital Partners, has invested in First Atlantic Bank Ghana, a full-scale commercial bank with over 20 years’ experience in the Ghanaian banking industry.
Mawuli Ababio, Partner at PCM Capital Partners, said: “This transaction gives our fund exposure to a fast growing institution in which our interests are aligned with those of key management and shareholders.”
The investment was made through AA Global Investments, a Mauritius registered special purpose vehicle (SPV) controlled by two key managers of the bank.
The deal which is structured as a combination of private placement and a rights issue will give AA Global Investments over 15% of First Atlantic Bank.
Current shareholders of the bank are Lagos based Kedari Capital and local investors.
The West Africa Emerging Markets Growth Fund was launched by Phoenix Capital Management (PCM), in partnership with the African Development Bank (AfDB), the South African Public Investment Corporation (PIC), the Bank for Investment and Development (EBID) and private financial companies.
The €38.5m Fund aims at funding SMEs with high growth potential in West Africa, taking minority stakes through equity or quasi equity instruments.
The WAEMGF favors investment opportunities in the energy, finance, telecommunications, information technology and multimedia, agribusiness and distribution sectors.
Set up in 1995, First Atlantic Bank offers universal banking and financial brokering services to retail and corporate clients.
The bank has grown to manage 19 branches and service agencies across the country.
This investment in First Atlantic Bank, which comes after three years of thorough re-branding and restructuring, will shore up the bank’s capital base, and more importantly partly fund expansion of the branch network and IT platform.
Jean-Michel Kamanan, Senior Manager at PCP, said: “WAEMGF has backed the bank based on strong fundamentals and growth expectations despite a rather competitive environment and will have a Board seat.”