Polaris Bank: Five Things To Know Know About Strategic Capital Investment's Acquisition

The Central Bank of Nigeria (CBN) has disclosed that Strategic Capital Investment Limited (SCIL) is now the new owner of Polaris Bank.

So far information about SCIL is still sketchy, but here are five things you should know about the acquisition:

1. The Central Bank claimed SCIL has paid the upfront of N50 billion and in accepting the terms, it will repay fully the sum of N1.305 trillion being the consideration bonds injected by the CBN.

2. The amount paid is far below the N1.21 trillion CBN, and Asset Management Corporation of Nigeria (AMCON) said it has poured into the bank to revive it after Skye Bank went under

3. Even though the bank was sold for N50 billion, the repayment of N1.3 trillion means the bank will have to pay Polaris Bank about N52 billion a year in redeeming the bonds raised by AMCON. 

4. For the bank to repay the loans they will have to generate profits in excess of N60 billion over the next 25 years

5. The Central Bank of Nigeria has received an immediate return for the value it has created in Polaris Bank during the stabilisation period, as well as ensuring that all funds originally provided to support the intervention are recovered.