Oragroup, the Togo-based, regional commercial banking holding company with operations spanning six countries in West and Central Africa, today announced that it has closed a first tranche of equity fundraising at US$18 million from investors including Development Finance Institutions BIO and PROPARCO. This investment marks a new milestone in an ongoing focus on fundraising and growth expansion at Oragroup, led by pan-African private equity firm, Emerging Capital Partners(ECP).
In order to support its ambitious acquisition program, the group will seek to raise funds in the region of US$50 million through a combination of debt and equity financing from a diversified investor base which includes local, regional and international investors, adding both retail and institutional shareholders to Oragroup’s share capital.
Commenting on the equity fundraising, Patrick Mestrallet, CEO at Oragroup said: “This capital injection represents a major landmark for Oragroup; highlighting our existing investors’ confidence in our business model and in the pan-African markets in which we operate. Through this additional investment, we will be able to undertake the next steps in our expansion plans, supported by market leading private equity firm ECP”.
Commenting further, William Nkontchou Director of the ECP Paris office, said: “ECP has been active in the African financial services sector for over a decade, and Oragroup is a cornerstone investment. This latest round of successful fundraising demonstrates that Oragroup’s investors are backing its long-term development and we look forward to moving our relationship forward into its next phase of growth.”
In November 2011, Oragroup announced that it had attracted a US$20 million growth equity investment from BIO ($7million) and PROPARCO ($13 million).
E ‘Deal of the Year’ by Africa Investor magazine and was honored with a Special Distinction in the category of Best Emerging Countries Private Equity Fund: Africa & MENA by Private Equity Exchange.
