Bisola David
A German-Nigerian fintech startup, BFREE, and some of its international funding partners have hinted at the prospect of acquiring some of Union Bank of Nigeria’s impaired loan portfolios.
According to The Punch, BFREE and Union Bank signed a Memorandum of Understanding during the German-Nigerian Business Forum in Berlin which may permit the acquisition, according to a statement released on Monday.
In accordance with the terms of the Memorandum of Understanding, BFREE and its foreign financing partners said that they will investigate the purchase of Union Bank’s distressed loan portfolios, with a possible investment cap of $40 million, with an emphasis on refinancing non-performing loan portfolios, especially those that have already been written off or are behind on their payments.
Union Bank claimed to have proactively responded to the difficult economic climate in the country after its equities were formally delisted from the Nigerian Exchange Limited’s Official Daily List on Monday.
“BFREE, leveraging artificial intelligence presents an innovative solution to the ongoing economic pressures that have necessitated increased flexibility for loan repayment plans,” the statement read.
“We are excited about the strategic partnership with BFREE as it aligns with Union Bank’s commitment to innovation and adaptability,” stated the Executive Director of Union Bank, Joe Mbulu.
Speaking about the partnership, he noted that the partnership demonstrates their commitment to coming up with creative answers for clients’ financial problems.
