Chinese bank to invest N600bn in UBA

28.01.2008

China Development Bank is in talks to buy a stake in the United Bank of Africa (UBA), with plans to invest more than $5 billion (about N600 billion), the Economic Observer was quoted by Forbes to have reported at the weekend.

China Development Bank’s initial plan is to buy into the bank for a stake worth $5 billion, although the specific size of the stake is still under discussion, an unidentified source close to bank told the newspaper.

China Development Bank hopes to obtain some influence in the management of UBA, but control would be nearly impossible, the source added.

In September, China Development Bank reportedly entered into a partnership with UBA to expand its financing of infrastructure projects in Africa.

A source within the bank told the Nigerian Tribune that it was true that CDB bought some of the bank’s shares, but did not disclose the amount.

Late last year, UBA, one of Nigeria’s top four banks, signed a Memorandum of Understanding (MoU) with China Development Bank (CDB).

The bank is a major player in long-term financing for key projects and supportive construction in infrastructure and industries.

The bank has more assets than the World Bank and Asian Development Bank combined, with $281 billion of loans outstanding by the end of June 2007.