Resort Savings and Loans woo New York Investor, secures $250mn in debt, equity

Mortgage Bankers, Resort Savings and Loans PLC has executed a $250 million financing facility to beef up capitalisation and strengthen it’s capacity in providing affordable housing for all.

The financial firm’s Board of directors and management disclosed this in a notification to The Nigerian Stock Exchange last Tuesday.

In the letter signed by Managing Director and CEO, Olayemi Baru and Chairman of the Board, Senator Sunday O. Fajinmi, the bank said it has been able to source a prospective investor, Milost Global Inc. of New York, USA who has held preliminary discussion with the bank.

“Following discussion, the bank has executed a $250m, financing facility term sheet and a commitment letter with Milost global Inc. the financing is comprised of $100m equity and $150 m debt.” The letter partly reads.

The bank had earlier secured the interest of a local investor which the central bank of Nigeria is expected to give final approval to in due course.

With the signing of the commitment letter, a due diligent exercise will take place after which a substantive agreement and other documentations will follow. The firm also noted that the Central Bank of Nigeria has been informed in the same vein.

Olayemi and Sunday explained that the transaction will be executed in phases through private placing for the investors after securing approvals from Central Bank of Nigeria, Securities and Exchange Commission and Nigeria Stock Exchange.

They believe the proposed investment which was approved at the firm’s board meeting of 26th February, 2018, will assist the Bank in no small way in recapitalizing the business, growing capacity and in becoming the leader in the mortgage finance industry.

“With this, we expect to be able to deliver impressive returns to our shareholders and satisfy the expectations of our other stakeholders in the very near future.”