19 May 2014: Oragroup, the Togo-based, regional commercial banking holding company with operations spanning twelve countries in West and Central Africa, has completed a significant second fundraising period, totaling US$40.6 million. The results of the fundraising has contributed to the company’s strong recent growth, with total assets growing by 59.8% over 2012, reaching over 700 billion CFA francs (US$1.5 billion).
Through the issuance of a bond (with terms of 6.75% from 2013-2019), Oragroup – which is controlled by pan-African private equity manager Emerging Capital Partners – has raised 15 billion CFA francs (US$31 million) in addition to €10 million (US$14 million) from Gabon's Strategic Investment Fund (GSIF). The public offering was launched by Oragroup in October 2013, closing earlier than expected in response to high investor interest on November 27, 2013.
Oragroup has also attracted €7 million (US$9.6 million) from the German Development Finance Institution Deutsche Investitions-und Entwicklungsgesellschaft mbH (DEG). This builds on the first tranche of funding totaling $18 million secured by the banking group in May 2013 from BIO and PROPARCO.
The investments mark a major step in an ongoing focus on fundraising and growth expansion at Oragroup. Since January 2013, the company has raised in excess of US$80 million through a combination of debt and equity financing from a diversified investor base including local, regional and international investors. ECP continues to hold a majority stake and control the board of Oragroup.
Commenting, Patrick Mestrallet, CEO at Oragroup said: “The success of this latest fundraising round represents a major milestone for Oragroup. The high demand demonstrated by investors for our bond issue, and the additional investment provided by DEG, are testament to Oragroup’s provision of profitable, socially equitable and sustainable banking which we will continue to build upon in the coming years. We continue to fundraise in support of an ambitious acquisition programme.”
Providing further comment, Josef Boven, Head of DEG’s Africa department, said about its investment: “We have confidence in Oragroup’s business model and in the pan-African markets in which they operate. The Group perfectly meets our target of providing an adequate balance between economic efficiency and development impact.”
In 2013, Oragroup announced that it had acquired a controlling stake in Banque Regionale de Solidarité (BRS) - the regional institution established in 2004 to provide micro-financing and funding for SMEs. Oragroup completed the acquisition in partnership with the West African Development Bank, which also has a share in BRS.