A German-Nigerian fintech firm, BFREE, and some of its international financing partners have revealed the possibility of acquiring some of the distressed loan portfolios of Union Bank of Nigeria.
According to a statement seen by BusinessDay, it was revealed that BFREE and Union Bank signed a Memorandum of Understanding during the German-Nigerian Business Forum in Berlin which may allow the acquisition.
Under the terms of the MoU, BFREE, in conjunction with its international financing partners, said that it will explore the acquisition of distressed loan portfolios from Union Bank, with a potential investment cap of $40m with a focus on refinancing non-performing loan portfolios, particularly those delayed in repayment or already written off.
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Union Bank, whose stocks were officially delisted from the Official Daily List of the Nigerian Exchange Limited on Monday, said that it has proactively adapted to the challenging economic environment in the country.
The statement said, “The ongoing economic pressures have necessitated increased flexibility for loan repayment plans, and BFREE, leveraging artificial intelligence presents an innovative solution.”
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Speaking about the partnership, Executive Director of Union Bank, Joe Mbulu said, “We are excited about the strategic partnership with BFREE as it aligns with Union Bank’s commitment to innovation and adaptability. This collaboration signifies our dedication to finding innovative solutions to the economic challenges faced by our customers.
