By Alex C
Global alternative asset manager, The Carlyle Group, has invested $147 million in Diamond Bank Plc, the bank said in an official press statement.
The investment which came through the bank’s recently completed $305 million rights issue, is set to improve Diamond Bank’s Tier 1 capital. This will strengthen both its balance sheet and support the bank’s continued growth plans.
“This investment is a testament of the Bank’s strong brand and success over the years, particularly in the Retail/SME space,” said Uzoma Dozie, Group Managing Director and Chief Executive Officer of Diamond Bank.
He expressed confidence that Carlyle’s support will be fruitful and benefit all stakeholders. “They bring global expertise in financial services and banking, having invested $4 billion globally in over 25 financial services companies, along with long-standing experience in emerging markets.”
Part of the proceeds of the rights issue of the bank, which opened on July 30 and closed on August 26, will be applied towards the development of its information and communication technology infrastructure. It will also be used as capital support for the bank to promote renovation and growth of the bank’s business locations. Proper positioning will help it seize bigger opportunities in the financial sector.
The Carlyle Sub-Saharan Africa Fund and its affiliates have invested approximately $300 million to date across a variety of industries and geographies in Africa.
“Diamond Bank is one of the most recognised retail banks in Nigeria, with a strong corporate culture, best-in-class management team, advanced technology, large retail franchise and innovative product and service offerings,” said Genevieve Sangudi, Managing Director and Head of West Africa for the Carlyle Sub-Saharan Africa Fund, who expressed the company’s pleasure at investing in Diamond Bank.
Sangudi also said that the bank was in a good position to continue benefiting from Nigeria’s attractive macro-economic trends. Carlyle is therefore ready to fully support the bank’s strategic goal of becoming one of the most successful Tier 1 banks in Nigeria and West Africa.