There are indications that the worst may indeed be over for troubled Aso Savings & Loans Plc, following the injection of fresh $250m into the company by Milost Global Inc of New York, U.S, a new investor, in what is expected to enhance its position in the Nigerian primary mortgage industry.
A notice to the Nigerian Stock Exchange (NSE) jointly signed by Olayemi Rabiu and Senator Sunday Fajimi, managing director/chief executive and chairman respectively of Aso savings, explained that the financing facility, which was approved at a board meeting held on February 26, 2018.
In the notice to the NSE dated March 6, 2016, Aso Savings said the facility for which commitment letter has been executed, is made up of $100m equity and $150m debt.
The company said it “had earlier secured the interest of a local investor (to) which the Central Bank of Nigeria is expected to give final approval to in due course.”
The transaction will however be executed in phases by way of private placement for the investors after due approvals by the CBN, the Securities & Exchange Commission and the Nigerian Stock Exchange (NSE).
Following the signing of the commitment letter, the company said a due diligence exercise would be conducted after which a substantive agreement and other documentations will follow, a development it said the CBN has been duly informed of.
The board and management therefore expressed belief that the proposed investment will help to significantly recapitalize, grow capacity and enable it becoming the leader in the Nigerian mortgage finance industry.
“With this, we expect to be able to deliver impressive returns to our shareholders and satisfy the expectations of or other stakeholders in the very near future,” company further assured.