Union Bank secures US$750mn

Published: April 6, 2011

Nigerian bank confirms recapitalisation deal with consortium.

Union Bank of Nigeria has closed a US$750mn recapitalisation deal with a consortium of institutional investors.

The bank was one of 10 to be bailed out by the Central Bank two years ago after an audit of the country’s banks revealed financial mismanagement at several institutions.

The consortium was led by private equity firm African Capital Alliance, and comprised Botswana’s ABC Holdings, TRG Management, New York-based Keffi Group and other US institutional investors.

This is the first deal announced by one of the rescued banks. Other troubled institutions are expected to announce funding deals soon.