Templars advises U.S. International Development Finance Corporation on a US$200 million facility to Union Bank for SMEs, Women-led Businesses and Digitization

DFC is the successor entity to the Overseas Private Investment Corporation (OPIC), the development finance institution of the United States government.

The 10-year facility provided to Union Bank under the DFC’s 2X Women’s Initiative will be utilized by the bank for investments in digitization and on-lending to small and medium enterprises (SMEs) in Nigeria, including individual women borrowers and businesses owned or led by women or otherwise supporting women.

The transaction, which was facilitated by Atlas Mara Limited (ATMA:LN), a significant minority shareholder in Union Bank, achieved financial close at the end of April 2020 with a first drawdown of US$150 million.

The Templars team was led by Partner and Finance Practice Head Chike Obianwu with support from Senior Associate Modupe Dabiri and Associates Oluwatobi Alebiosu and Benita Ogbodo. Disputes Resolution Senior Associates Sesan Sulaiman and Chidiebere Ejiofor and Associate Jacob Obi provided due diligence support and advice.

International Legal Counsel to DFC, White and Case, fielded a Washington DC-based team led by Counsel Suzanne Perry, Partner Of Counsel Victor DeSantis and Associate Jacqueline Durand.

Commenting on the transaction, Chike Obianwu said “We have had the privilege of advising numerous development finance institutions in connection with funding several financial institutions, businesses and projects. But we are particularly delighted to have supported DFC on this transaction, because of the uniqueness and inclusiveness of the 2X Women’s Initiative. It is also very fulfilling to have been a critical part of this successful closing at the height of the COVID-19 lockdown in Lagos, London and Washington, DC.’’