Citi takes Zenith stake

Citi takes Zenith stake

Published: July 7, 2011

Bank’s private equity arm invests in Nigerian banking sector.

Citi Venture Capital International (CVCI) has become the latest private equity firm to invest in Nigeria’s banking sector, taking an undisclosed stake in Zenith Bank.

This deal follows similar private equity investments earlier in the year. In March, African Capital Alliance invested US$750mn in Union Bank. A month later, Vine Capital bought a 55% stake in Afribank. Both target banks were part-nationalised in late 2009.

Sunil Nair, CVCI’s EMEA and India head, said Nigeria is an attractive market due to its projected growth rates, large population and increasing economic diversification. He also pointed to a large un-banked and under-banked depositor base and growing funding demand from the oil and gas market as motivations behind the Zenith deal.