Femi Otedola ties Geregu shares with First Bank’s N9.28bn loan

Nigerian billionaire, Femi Otedola, took out N9.28 billion from First Bank of Nigeria months before acquiring a majority stake in the lender last year.

Ripples Nigeria reported in October 2021 that Otedola acquired direct holdings of 210 million shares and an indirect stake of 2.50 billion shares of FBN Holdings.

The acquisition gave him a 7.56 percent stake in FBN Holdings, with his investment company, Calvados Holding, holding the indirect shares.

Ripples Nigeria gathered that the approval for the N9.28 billion loan was obtained by his power company, Geregu Power, in April last year.

Calvados Holding has majority shares in the power company through Amperion, an investment company owned by Otedola.

Geregu’s 2021 financial statement seen by Ripples Nigeria on Monday revealed that the loan was tied up with 80 percent of the company’s shares owned by Amperion.

READ ALSO: First Bank shares drop -3.19% as govt selects Otedola’s firm in bid for power plants

The statement read: “Loans and borrowings of N9,289,820,000 represents the principal and 13.5% p.a interest rate on First Bank of Nigeria N10billion revolving facility to augment working capital.”

 “The collateral for the loan from First Bank are: all assets debenture of the Group Parent Company; Charge on the 80% shares of Geregu Power Plc owned by Amperion; Corporate Guarantee of Calvados Global Services Limited, Personal Guarantee of the Chairman and domiciliation of all the Company`s receivables account to First bank while the facility subsists.”

Meanwhile, the company reported N70.95 billion revenue for 2021,

This surpassed the N53.67 billion the company generated a year before.

Its net profit rose from N14.12 billion in 2020 to N20.55 billion last year.

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