November 21, 2019: The Pan-African investment fund Emerging Capital Partners (ECP) announces the signing of an agreement to partially sell its shares in Oragroup to the Social Welfare Institute – General State Pension Fund (IPS-CGRAE) of Ivory Coast, which would become, after approval by the WAEMU Banking Commission and regulators in other currency areas, the main shareholder of the Pan-African banking group with 61.45% of the capital.
With a balance sheet total of CFAF 2,171 billion ($3.7 billion), 510,926 customers, 152 branches, 1,857 employees, CFAF 127 billion in net banking income, CFAF 130 billion in equity and CFAF 30 billion in net income as of December 31st, 2018, Oragroup is the leading independent banking group in the sub-region.
The agreement also includes several institutional shareholders of Oragroup (Proparco, DEG, BIO and BOAD) with a partial sale of their shares. On the strength of the banking group’s growth prospects and development plan, ECP will remain a shareholder in Oragroup alongside IPS-CGRAE, one of the major shareholders with nearly 20% of the capital in a dynamic of continuity over the long term. In addition, BOAD retains a long-term 40% stake in Orabank Ivory Coast and its branches: Orabank Burkina, Orabank Guinea Bissau, Orabank Mali, Orabank Niger, and Orabank Senegal.
This transaction follows the introduction of Oragroup on the Regional Stock Exchange (BRVM) in April 2019, representing 20% of its capital, the largest transaction since the creation of the BRVM in 1998 and a regional capital market raising of CFAF 56.92 billion (€86 million). IPS-CGRAE had subscribed to this public offering for 9% of Oragroup’s floating capital.
“ECP is very proud of the progress made since investing in Oragroup in 2008. Together, we have created a leading banking group with a Pan-African focus. ECP’s strategy is to create value in its investments by bringing company operations up to international standards to promote the emergence of regional champions over time. The initial public offering and this transaction validates this strategy. ECP is convinced that with CGRAE, Oragroup will continue its strong growth trajectory,” explains Vincent LE GUENNOU, Co-CEO of Emerging Capital Partners.
“With the support of exceptional revenues, the acquisition of Oragroup is a historic milestone for the State Employees’ General Retirement Fund, which has become a key player in the development financing of our regional economies. Investing today to better finance the pensions of tomorrow is very clearly our roadmap. As a social welfare institution, IPS-CGRAE wishes to optimize its financial capacities as an investor in order to intensify the progress towards the sustainable growth of our economies for the benefit of populations, pensioners, and public officials. With the Oragroup teams in whom we have complete confidence, we will continue in this direction. In addition, as part of a large project of pan-African institutional that the IPS-CGRAE will promote, social welfare funds of the sub-region will be invited to participate in the operation and make their contribution to the development of the group in each country of presence.” says Abdourahmane Tiémoko BERTE, Director General of the Institute of Social Welfare – General Fund of Retirement of State Agents. The synergy with IPS-CGRAE and its 83,000 members will sustainably strengthen the banking group’s performance and improve product offerings for the well-being of retirees and government officials in Ivory Coast and the sub-region.
Since 2008, with the support of ECP, Oragroup has developed its geographical footprint and its activities through organic and external growth, with the acquisition in 2012 of the assets of the Togolese Development Bank and in 2013 of The Solidarity Regional Bank with BOAD. The Group’s net banking income and assets increased 12-fold between 2008 and 2018, a significant result in the sector. As for Oragroup’s commercial brand, Orabank, it was launched in 2011 and has since established itself as a benchmark brand.
Over the last 10 years, Oragroup’s growth trajectory has been recognized with a ranking in the Top 5 in several of its countries of presence (No. 1 in Togo) and numerous awards: the African Banker Awards in 2015 and 2017 for “Best Regional Bank in West Africa,” the “Best Bank” of Burkina Faso in 2017 and 2018, Togo and Senegal in 2018 by the Financial Times group. Finally, the long-term A and short-term A2 investment ratings obtained from Bloomfield in May 2018 and August 2019 confirm the Group’s solidity and performance.