8 March 2018

Nigeria: United States Firm to Inject $250m Into Resort Savings & Loans PLC

The future looks bright for Resort Savings & Loans Plc as the mortgage banking firm has executed a $250 million financing facility with Milost Global of United States.

In a notification to the Nigerian Stock Exchange (NSE), Resort Savings & Loans Plc said it has held preliminary discussions with Milost Global as prospective investor in the bank.

"Following the discussions, the bank has executed a $250 million financing facility term sheet and Commitment Letter with Milost Global Inc. The facility comprises $100 million equity and $150 million debt," the bank said.

According to the bank, it had earlier secured the interest of a local investor which the Central Bank of Nigeria (CBN) is expected to give final approval to in due course.

Resort Savings had last year expressed its preparedness to play a dominant role in the country's mortgage banking sector, having overcome the board and management crisis which it faced for over two years.

The bank last year appointed a new management team to steer the organisation. Senator Sunday Fajinmi was appointed the Board Chairman, while Mr. Olayemi Rabiu was appointed the managing director/CEO and two executive directors in the persons of Mr. Kolawole Adesina and Mr. Aliu Oshoke.

"The bank is already normalising her relationship with various developers with a view to leveraging on them in creating good mortgages for her teeming customers in excess of 80,000.

"Issues are equally being resolved with appropriate agencies with a view to bringing the bank back to profitable operations within the shortest time possible," the bad had said.

Meanwhile, losses by bellwether stocks halted the bull run at the stock market yesterday as the NSE All-Share Index fell by 1.5 per cent to close at 42,952.70. Similarly, market capitalisation shed N236.1 billion to close at 15.4 trillion.

Losses recorded by Dangote Cement Plc (-3.6 per cent), Nigerian Breweries Plc (-3.4 per cent); Guaranty Trust Bank Plc (-1.9 per cent) were mainly responsible for the bearish trading.

Nigeria

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