Nigeria’s Union Bank, ACA Sign Deal

Nigeria’s Union Bank has signed a recapitalization deal with a group of institutional investors led by private equity firm African Capital Alliance.

Nigeria’s Union Bank has signed a recapitalization deal with a group of institutional investors led by private equity firm African Capital Alliance (ACA), Reuters reports. ACA will be investing between $750 million and $500 million in equity and $250 million in tier two capital, as per the deal. Additional funding to meet capital requirements will be obtained from existing shareholders and the Asset Management Corporation of Nigeria. The Union Bank will also introduce a rights issue to existing shareholders.

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