Milost plans $1bn investment to revive Unity Bank

New York based Milost Global Inc. has continued to increase its investments in Nigeria to resuscitate moribund businesses from the oil and gas to the banking sectors.

Milost Global Inc has shown interest in investing $1 billion to recapitalize the Unity Bank Plc in Nigeria, which has been operating below optimal capacity since the recession of the economy that slowed down investments.

It was gathered that Milost has offered to invest $700 million in equity and $300 million in five-year bonds that can be converted into shares in the Nigerian lender.

The private-equity firm will get an initial stake of about 30 per cent in the Lagos-based bank in exchange for its first equity investment of $250 million.

However, the transaction is still subject to a due diligence as well as regulatory approvals. The first part of the deal, still on the negotiation table, may be completed in the second quarter. The rest of the cash will be drawn down in intervals over a period of four years, provided Unity Bank has sufficient shares to issue to Milost.