The Central Bank of Nigeria has announced that it has completed the sale in Polaris Bank to Strategic Capital Investment limited (SCIL), new core investor.
Director, Corporate Communications Department, Osita Nwanisobi, said in a statement that Strategic Capital Investment limited (SCIL) has paid N50 billion as an upfront consideration to acquire 100% of the equity of Polaris Bank and has accepted the terms of the agreement, including the full repayment of the sum of N1.305 trillion, being the value of the bonds, which was part of its intervention in 2018, to take over from the former Skye Bank Plc to establish Polaris Bank to assume its assets and certain liabilities, the banking industry regulator injected into Polaris through the Asset Management Corporation of Nigeria (AMCON) and is to be repaid over a 25-year period.
The statement futher reads, “The Central Bank of Nigeria (CBN) and the Asset Management Company of Nigeria (AMCON) are pleased to announce the completion of a Share Purchase Agreement (SPA) for the acquisition of 100% of the equity in Plaris Bank by Strategic Capital Investment Limited (‘SCIL’).
Polaris has been operating as a bridge bank since 2018 when the Central Bank of Nigeria moved to revoke the licence of the former Skye Bank Plc. and established Polaris Bank to assume its assets and certain liabilities. As part of the CBN intervention, consideration bonds with a face value of N898 billion (future value of N1.305 trillion) was injected into the bridge bank through AMCON, to be repaid over a 25-year period.
The sale was sanctioned to prevent a certain collapse of the bank to enable its stabilisation and recovery, protect depositors’ fund, prevent job losses and preserve systemic financial stability.
“This process has provided the CBN with an unprecedented opportunity to recover its intervention funds in full and promote financial stability and inclusive growth. We wish SCIL well as they implement growth plans to build the bank from the strong foundations that have been established.”
