The group says this development represents a major vote of confidence in its business model, financial standing and unique positioning in regional and international markets.
National Bank of Canada will immediately acquire a 9.5 per cent stake in AfrAsia Bank, with the aim of further increasing its shareholding in the near future.
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The sixth largest bank in Canada, is an integrated provider of financial services to retail, commercial, corporate and institutional clients.
Louis Vachon, President and Chief Executive Officer of National Bank of Canada welcomed the news of this partnership.
“We are pleased to partner with AfrAsia Bank and have the opportunity to use our expertise and resources to contribute to its development,” said Vachon.
“This investment will be the first by National Bank of Canada in Africa. We believe its fast-growing and emerging economies offer attractive market opportunities.”
Arnaud Lagesse, Chairman of AfrAsia Bank said since inception, AfrAsia Bank’s vision has been to bring change and innovation to Mauritius banking, and to grow regionally as well as internationally.
“Over the past seven years, we have been consolidating our presence locally while reinforcing our footprint through our representative offices in South Africa and in London, and our associate company in Zimbabwe,” he said.
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“With numerous representative offices, subsidiaries and partnerships, through which it can serve clients in the United States, Europe and other parts of the world, National Bank of Canada is a valuable shareholder that can further help with US connections as well as relations with European markets.”
James Benoit, CEO of AfrAsia Bank said the group has continuously invested in developing the bank to become a significant player in the region, Africa as well as internationally.
“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,” said Benoit.