Nigerian Bank Gets $250m from Foreign Investor to Recapitalise

March 8, 2018
Nigerian Bank Gets $250m from Foreign Investor to Recapitalise

By Modupe Gbadeyanka

With the Nigerian economy out of recession and back on its feet, more investors are getting interested in putting their money in the country.

The latest to receive such foreign funding package is the Resort Savings & Loans Plc, which has with over 20 years of operational experience and has grown steadily in achievements, acceptability and reputation.

The mortgage bank recently announced getting funding support from an American equity company, Milost Global Inc.

This foreign investor recently injected some money into Nigerian companies.

A statement jointly signed recently by Chairman of the board of Resort Savings & Loans Plc, Mr Sunday Fajinmu, and the Managing Director, Mr Olayemi Rabiu, disclosed that the fund would be used to expand operations of the bank.

It was further disclosed that the action was approved during the board meeting of the company held on February 26, 2018 with the financing comprising $100 million equity and $150 million debt.

“The board and management wish to notify the Nigerian Stock Exchange (NSE) that the bank has been able to source a prospective investor, Milost Global Inc of New York, USA, who has held preliminary discussions with the bank.

“Following discussions, the bank has executed a $250 million financing term sheet and a commitment letter with Milost Global Inc. The financing comprises $100 million equity and $150 million debt,” the statement said.

“The bank had earlier secured the interest of a local investor, which the Central Bank of Nigeria (CBN) is expected to give final approval to in due course.

“With the signing of the commitment letter, a due diligence exercise will take place after which a substantive agreement and other documentations will follow. The CBN has been informed in the same vein,” it added.

“The transaction will be executed in phases through private placing for the investors after securing approvals from the CBN, Securities and Exchange Commission (SEC) and the NSE.

“It is the believe of the board and management that the proposed investment will assist the bank in no small way in recapitalising the business, growing capacity and in becoming the leader in the mortgage finance industry.

“With this, we expect to be able to deliver impressive returns to our shareholders and satisfy the expectations of our other stakeholders in the very near future,” the lender explained.

Modupe Gbadeyanka

Modupe Gbadeyanka is a fast-rising journalist with Business Post Nigeria. Her passion for journalism is amazing. She is willing to learn more with a view to becoming one of the best pen-pushers in Nigeria. Her role models are the duo of CNN's Richard Quest and Christiane Amanpour.

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