National Bank of Canada purchases stake in Ivory Coast's NSIA
This is the second African investment for the Canadian Bank.National Bank of Canada (NBC) and Amethis Africa Finance have announced they are buying a stake in Ivorian financial group NSIA.
The purchase is made from private-equity fund ECP Africa Fund III PCC, NBC said in a statement seen by Bloomberg.
National Bank will pay a maximum of C$116 million (€85 million) for the investment and will have a 20.9 per cent interest according to chief executive officer Louis Vachon.
Amethis will take a 5.4 per cent interest in the Ivorian financial services group, which provides a wide range of banking and insurance products and services to individual and business clients. The deal is expected to close in the third quarter.
It is the second African investment for National Bank, who bought a 9.5 per cent stake in Mauritius-based AfrAsia Bank in December for C$16 million.
About $300 billion (€273 billion) was raised globally for Private Equity in 2013, but only three per cent went to Africa-focused funds, said Mike Casey, the director of EMPEA Consulting, during a plenary focused on Private Equity at the Africa Development Forum in Marrakech.
Participants at the forum said that while private investors face many challenges when investing in Africa, the Private Equity industry on the continent was at a potential turning point.