Resort Savings & Loans Plc., a Nigerian Stock Exchange quoted mortgage bank has announce that it has executed a $250 million financing facility term sheet and a binding commitment letter with Milost Global Inc., a global private equity firm.
In a notice to the Nigerian Stock Exchange (NSE) seen Wednesday, the mortgage bank said the financing agreement with Milost Global is part of the terms wherein Milos will invest $250 million in the bank comprising $100 million as equity capital and $150 million as debt.
On the sourcing of the financing, Resorts Savings & Loans was advised by Palewater Advisory Group Inc. as a sole transaction advisor and financing facilitator.
The transaction, which is expected to be finalized through a private placement, is subject to the approval of the NSE, Securities and Exchange Commission (SEC) and the Central Bank of Nigeria (CBN).
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Resort Savings had earlier in December notified stakeholders that it was in talks with a local investor to invest N8 billion, which the Central Bank of Nigeria is expected to give final approval in due course.
“The investment will enable us to assume the leadership role in the mortgage banking business in Nigeria, the West African sub-region and Africa as a whole as well as contribute excellently to the growth in African economies,” Olayemi Rabiu, thief executive officer of Resort Savings & Loans said.
On his part, Kim Freeman, managing partner & CEO of Milost Global Inc. said: “We are very pleased to have executed the term sheet and commitment letter with Resort after our recent trip to Nigeria. The impressive Resort team led by Mr. Olayemi Rabiu and Senator Fajinmi were very enthusiastic and will do a great job growing the Resort business which will enable more home ownership in Nigeria.”
Equally, Solly S. Asibey, senior partner & CIO of Milost Global Inc, stated: “This investment ties in very well with our vertical integration strategy. When it comes to human settlements and housing, one of the main stumbling blocks experienced in Africa at large other than the development aspect is the issue of Mortgage Banking.
“Resort has proven itself to be amongst the leaders in the provision of mortgage Banking in Nigeria, and in tandem with Milost, they will gain more traction within this market and beyond. We are therefore very excited about this venture moving forward.”
Reacting to the deal, Senator Sunday Olawale Fajinmi, chairman of the board of Resort Savings & Loans said: “Our Board is excited about the prospect of transforming Resort Savings & Loans Plc. and creating a huge value for shareholders as well as meet the expectations of our other stakeholders
This marks the third major transaction, Milost has executed with a Nigerian entity. The firm had recently been linked to acquiring a large Nigerian bank.
In February, Japaul Oil announced it had signed a $350 million financing agreement with Milost, which would be channeled towards its mining projects.
In January, Milost Global acquired Primewaterview Holdings Nigeria Limited for $1 billion. Primewaterview is a diversified holding company with a portfolio of real estate, oil & gas, quarry mining, healthcare and power.
Milost Global, founded by Mandla J Gwandiso in 2015 is an American private equity firm headquartered in New York, with more than $25 billion in committed capital. The company also serves as provider of alternative capital, mezzanine finance and alternative lending to a broad range of industries across the globe including technology, transport, cannabis, education, distribution, mining, oil & gas, financial services, healthcare, pharmaceuticals, real estate, alternative energy and infrastructure development.
On the other hand, Resort Savings & Loans commenced business on November 29, 1993 as a primary mortgage institution (PMI). The Bank has done active business in leasing and credit facilities, property acquisition management and fund management.