November 2018
TLG announced today a 3 year credit deal of US$30million with Atlas Mara (Lon: ATMA), through its Credit Opportunities Fund. TLG will be funding $10million of the total facility in 2018, whereas, the remaining amount is expected to be funded in 2019. This marks TLG’s seventh investment in the African banking sector.
Partnering with Atlas Mara provides TLG with a great long term opportunity to back a well-diversified banking platform with presence in West, Southern, and East Africa. Led by Bob Diamond as the chairman and John Staley as the CEO, Atlas Mara has a strong management team with a vast experience of working with different financial institutions across Africa. With more than $3Bn of assets, Atlas Mara reported its highest ever net profitability of $45M in 2017. This is a testimony of a growing momentum and successful on-going implementation of operating cost reduction programme at the group. Nigeria has always represented an important location for TLG within Africa. Recent reforms by the government to create a better economic environment have produced positive results. With Union Bank of Nigeria being Atlas Mara’s largest asset, we believe that the group is in a strong position to benefit from rising credit growth and consumer activity in the country. Atlas Mara is focused on digitising its offering and using technology to grow its future revenues. TLG’s fund injection would allow the group to grow lending to small and medium enterprises and invest in technology driven channels such as Digital Bank Lending.
ZhiYong Heng, Head of Special Situations Group, who led the deal for TLG, said “Africa’s banking sector is one of the most compelling growth stories in the world today and we want to capitalise on it by taking strategic positions in Africa’s promising financial services markets. This deal, our largest single transaction since the inception of our Credit Fund in 2016, demonstrates our long-term commitment to promoting financial inclusion and technological innovation in Africa. Atlas Mara, with its globalised shareholder base and experienced management is well-placed to become a foremost Pan-African Banking Group. Through our partnership with Atlas Mara, we hope to reach more quality African businesses and this transaction represents an exciting step forward in our fund’s continued efforts to support growth and job creation in the region.”
“Through our partnership with Atlas Mara, we hope to reach more quality African businesses and this transaction represents an exciting step forward in our fund’s continued efforts to support growth and job creation in the region.”
