Oragroup attracts $20mn of new capital

Oragroup, the Togo-based regional commercial banking holding company with operations spanning six countries in West and Central Africa, today announced that it has attracted a $20mn growth equity investment from Development Finance Institutions (DFIs) BIO ($7mn) and PROPARCO ($13mn).

This investment marks  a major step in an ongoing focus on fundraising and growth expansion at Oragroup, led by pan-African private equity specialists Emerging Capital Partners (ECP). By the end of 2011 Oragroup will have raised in excess of $85mn 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. ECP continues to hold a majority stake and control the board of Oragroup.

Under the guidance of ECP-appointed Group Managing Director Patrick Mestrallet, Oragroup has effected a rapid operational turnaround and will shift its strategic focus towards banking consolidation. In order to fund its ambitious acquisition program the Group will seek to raise in excess of $200mn over the next two years.

Commenting, Patrick Mestrallet, CEO at Oragroup said, “This investment represents a major milestone for Oragroup. We anticipate that BIO and PROPARCO’s reputations as respected investors in the banking sector, with a focus on financing operations which are financial profitable, socially equitable and sustainable, will enhance our already established standing and offer significant commercial opportunities for the coming years. Their support adds stability and depth to the regional African financial sector as well as the private companies which Oragroup locally finances. We also believe our new partnership will continue to strengthen our position in the segments of SMEs/SMIs and further allow us to develop innovative approaches that bring us closer to our customers in all segments: private individuals, SME’s and major corporate clients.”