Business
Union Bank Foresees End To Recapitalisation Challenges
The Union Bank of Nigeria (UBN) Plc says its transaction implementation agreement with the African Capital Alliance Consortium (ACA Consortium) will impact positively on the bank. Mr Francis Barde, Head of Corporate Affairs of the bank, told newsmen in Lagos on Thursday that the agreement had helped the bank to overcome some of its challenges.
Barde said that the bank’s recapitalisation would materialise as soon as the bank concluded its negotiations with the new investor in the bank.
He said that the investment was likely to translate to about 750 million dollars (N112.5 billion) in the bank.
Barde said that the investment consisted 500 million dollars (N75 billion) equity and additional 250 million dollars (N37.5 billion) in loan.
“The 500 million dollars is tied to the bank’s shares while the 250 million dollars is loan that will be repaid later,” he said.
He said that after the investment, the full capitalisation of the bank would be determined by the Assets Management Corporation of Nigeria (AMCON).
Barde also said that the achievement would be a feat, coming ahead of the Central Bank of Nigeria September deadline for banks to recapitalise.
“The hurdle that remained for the bank to cross is to get approval from the regulator and the shareholders of the bank,” he said.
Barde said that the conclusion of the capitalisation process would restore Union Bank to its healthy status and put it in the position to regain its pride of place in the Nigerian financial sector.
It would be recalled that UBN signed the agreement with ACA Consortium on July 12.