[Nigeria] Resort Savings & Loans secures $250m investment from Milost Global
US-based private equity investor Milost Global has signed a deal to invest $250 million in Resort Savings & Loans, a financial services company.
In a notice sent to the Nigerian Stock Exchange (NSE) the Mortgage bank said the financing agreement with Milost Global is part of the terms of the agreement, Milost will invest $250 million in the bank comprising $100 million as equity capital and $150 million as debt.
The transaction will take place through a private placement, subject to the approval of the NSE, Securities and Exchange Commission (SEC) and the Central Bank of Nigeria (CBN). Resort Savings in December last year had notified stakeholders that it was in talks with a local investor to invest ₦8 billion in the bank. Talks regarding this are still ongoing.
Olayemi Rabiu the chief executive officer of Resort Savings & Loans PLC, said, “The investment will enable the company 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.”
This marks the third major transaction Milost has executed with a Nigerian entity. The firm had recently indicated that it was in discussions to acquire a large Nigerian bank, reportedly Unity bank.
In February, Japaul Oil announced it had signed a $350 million financing agreement with Milos. The funds will 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.
Speaking about the deal in a statement Kim Freeman, Managing Partner & CEO of Milost Global Inc the deal is part of their recent trip in Nigeria and, “We are very pleased to have executed the term sheet and commitment letter with Resort.”
He continues, “We believe 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.”
Senior Partner & CIO of Milost Global Inc, Solly S. Asibey also noted that the 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.”
Milost Global, founded by Mandla J Gwandiso in 2015 is an American Private Equity firm that is headquartered in New York City, with more than $25 billion in committed capital 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.
Reacting to the deal, Senator Sunday Olawale Fajinmi, Chairman of the Board of Resort Savings & Loans PLC, also had this to say, “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.”
Resort Savings & Loans commenced business on November 29, 1993 and is a Primary Mortgage Institution (PMI). The Bank has done active business in Leasing and Credit Facilities, Property Acquisition Management and Fund Management.The company is listed on the Nigerian Stock Exchange (NSE).