African Export Bank Distributes $264.6 Million Dividend Payout

The African Export-Import Bank, established in 1993 under the auspices of the African Development Bank, has set its main mission as expanding and diversifying trade between African countries, and establishing itself as a center of excellence for managing all trade-related situations in Africa.

June 30 is a special day for shareholders who have invested in companies listed on the Mauritius Stock Exchange, akin to children eagerly awaiting Christmas.

It’s the time when companies announce dividend payments that reflect their good performance and reward their shareholders.

At least 16 companies listed on the official market have announced dividend payments, including Promotion and Development, BlueLife, Innodis, CIEL, United Basalt, and Alteo.

However, the institution that has been making headlines is the African Export-Import Bank, headquartered in Cairo, Egypt.

The bank has made commercial financing in Africa its primary activity. Shareholders of this institution should be smiling, as the bank’s board of directors has decided to distribute a dividend of $264.6 million (Rs 12.6 billion), a $105.3 million (Rs 5 billion) increase compared to December 31, 2022.

Certificate holders will receive $0.287 per certificate held, provided they were still on the list of certificate holders by August 14, 2024.

Furthermore, during the 2023 annual general meeting, it was decided to distribute a special dividend of $50 million from a concessionary financing facility.

However, the bank’s accounts for the first three months of 2024 do not mention the dividend payment as it is placed under a non-distributable profits regime and will be accounted for as equity in the accounts by December 31.

The bank’s results for the year ending December 31 demonstrate the board’s commitment to finding a balance between profitability, liquidity, and asset quality.

Once again, the group has experienced an increase in values that will benefit shareholders. For the future, management has set its priorities as growing revenues and assets, improving operational efficiency, maintaining sufficient equity capital, and ensuring adequate liquidity levels.

In its report filed with the Mauritius Stock Exchange on May 13 for the first quarter of 2024, it is noted that the group’s profits increased to $178.7 million from $171.1 million for the corresponding period in 2023, representing a growth of $7.5 million.

Source: l’Express