Skye Bank to raise N30 billion, restructures loan

11 Aug 2015
Financial Nigeria

Summary

The new equity capital will help Skye Bank prepare as Nigeria adopts stricter international requirements.

A branch of Skye Bank

Skye Bank Plc is in talks to raise N30 billion ($151 million) from existing and new investors to bolster its capital base, with the plan set to conclude by the end of the year.

The CEO of the Lagos-headquartered bank, Timothy Oguntayo, said the new equity capital will help Skye Bank prepare as Nigeria adopts stricter international requirements.

"With or without changes in the macro (economic) environment, our existing shareholders have shown some interest in the offering," he said, referring to a weaker naira currency and lower oil price that have hampered Nigeria's outlook in recent time.

Mr. Oguntayo said the Central Bank of Nigeria was restructuring N27 billion of short-term loans Skye Bank made to some state governments to 20-year maturities, paying a 16 percent coupon. The restructured loans will qualify as liquid assets, he said.

Skye Bank also said it was weighing a decision to adopt a holding company structure and retain its subsidiaries or divest them. It expected to complete the process by the second quarter of next year.


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