Bloomberg News

Spring Bank of Nigeria Set to Choose Investor, Meet Deadline

July 05, 2011

(Updates with Spring Bank comments in second paragraph.)

July 5 (Bloomberg) -- Spring Bank Plc, a Nigerian lender bailed out by the country’s central bank, is set to choose an investor to buy it and help meet a September deadline to inject new capital, the bank said.

The company is optimistic a “good deal” will be agreed to, the Lagos-based lender said in an e-mailed statement today.

Spring Bank held meetings with “over four prospective investors for its consideration and is satisfied with the meetings,” it said.

The Central Bank of Nigeria bailed out eight of the nation’s 24 lenders in 2009 with 620 billion naira ($4.1 billion). The rescued banks have until the end of September to recapitalize or risk liquidation, according to the central bank.

--With assistance from Vincent Nwanma in Lagos. Editors: Gordon Bell, Digby Lidstone

To contact the reporter on this story: Emele Onu in Lagos at eonu1@bloomberg.net

To contact the editor responsible for this story: Dulue Mbachu at dmbachu@bloomberg.net


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