A German-Nigerian fintech firm, BFREE, has revealed plans to acquire some of the distressed loan portfolios of Union Bank of Nigeria.
News About Nigeria reports that this was contained in a statement issued on Monday.
The statement also stated that BFREE and Union Bank had signed a Memorandum of Understanding, MOU, during the German-Nigerian Business Forum in Berlin.
According to the statement, the MOU signed by both parties may allow the Fintech Firm and some of its international financing partners the acquisition.
It was further revealed that that BFREE, together with its international financing partners, said that it will explore the acquisition of distressed loan portfolios from Union Bank, with a potential investment capital of $40m.
It noted that this was aimed at refinancing non-performing loan portfolios, particularly those delayed in repayment or already written off. This however was done under the terms of the MOU.
Union Bank, in the same vein, disclosed that it has adapted to the challenging economic environment in the country.
According to the bank, the economic pressures currently ongoing in the country, have created a necessity for increased flexibility for loan repayment plans, and BFREE, leveraging artificial intelligence presents an innovative solution.
Speaking on the partnership, Executive Director of Union Bank, Joe Mbulu, said the bank was excited about the partner’s as it aligns with its commitment to innovation and adaptability.
The bank, whose stocks were officially delisted from the Official Daily List of the Nigerian Exchange Limited on Monday, said the collaboration was an indicator that it was committed to finding innovative solutions to the economic challenges faced by its customers.
