Union Global Partners invests $500m in Union Bank

Union Global Partners Limited has announced the completion of its capitalization of Union Bank of Nigeria Plc with $500 million and currently holds 65 per cent of the outstanding common shares of Union Bank, or 11,008,274,206 common shares.
Union Global Partners is a consortium of Nigerian and international investors formed to recapitalize Union Bank.
Union Global Partners’ mission is to transform Union Bank into one of Nigeria’s leading financial institutions, and to build long-term, sustainable value for all stakeholders.
It will achieve this by investing in Union Bank’s infrastructure, operations and people, thereby strengthening its ability to deliver quality financial products and services to Nigerian consumers.
Union Global Partners endorses the Central Bank of Nigeria’s view that banking reforms are vital to strengthen the economy, and to place Nigeria among the world’s top 20 economies by 2020.
Dick Kramer, Chairman of Union Bank, remarked: “Attracting such a high quality consortium of local and international investors to recapitalise Union Bank demonstrates Nigeria’s potential.
“In addition, Union Global Partners’ investment in Union Bank provides a compelling vote of confidence for the banking sector.
“I look forward to working with Union Global Partners and Union Bank in developing long-term sustainable value for all stakeholders.”
Union Global Partners has six core investors including African Capital Alliance, African Development Corporation, Corsair Capital, FMO, the Richard Chandler Corporation and Standard Chartered Private Equity.
Together, the Union Global Partners investors bring a wealth of experience in transforming financial institutions in emerging markets through strategic planning, infrastructure investments, and introducing world-class standards of corporate governance.
One of the partners, the Richard Chandler Corporation, is bringing in $112 million to support the recapitalisation of Union Bank of Nigeria by Union Global Partners Limited consortium.
This investment equates to a 13.4 per cent position in the bank.
Founded in 1917, UBN is one of Nigeria’s most recognised and established banks, with a strong heritage and a pedigree brand.
UBN has a nationwide platform of over 400 branches, approximately $6.6 billion of total assets and approximately $ 3.5 billion of customer deposits.
Richard F. Chandler, Chairman of the Richard Chandler Corporation, remarked: “The Richard Chandler Corporation believes in building and developing great companies which can make a significant contribution to their nation’s economy. UBN has a strong heritage and brand which has attracted a stable low-cost depositor base. UBN is well positioned to allocate credit to those who need it most and use it best. This should enable businesses and entrepreneurs to flourish, supporting and accelerating Nigeria’s economic growth.”
Kramer said: “The Richard Chandler Corporation is a globally-renowned business group, with a strong track-record of investing in and building businesses in high-growth emerging markets. UBN and UGPL highly value the strategic investment of the Richard Chandler Corporation and its passion for building great companies. Furthermore, the Richard Chandler Corporation is one of the world’s leading social development groups with healthcare and education initiatives across Asia and Africa.”

. African Press Organisation.