Financial Intermediation
Deep expertise in banking, capital markets, fintech, and financial services regulation serving banks, investment firms, and emerging financial technology companies.
We support our Clients with:
Notable Experience
Advised a leading investment bank on a Partial Risk Guaranteed Standby Letter of Credit to be issued by the investment bank acting as L/C Issuing Bank under a USD$150 million Reimbursement and Credit Agreement;
Advised an indigenous commercial bank in relation to a USD$ 200 Million financing to be provided in conjunction with an international financial institution for the acquisition of oil and gas assets;
Advised on the USD100million Refinance Facility to an indigenous broadband company to refinance and restructure its existing debt obligations of circa USD80million and fund the construction of a data center;
Advised on US$ 60m debt refinancing of a diversified business group with interests in pharmaceutical, energy, industrial plastic packaging, importation and distribution of consumer goods as well as the agricultural sectors;
Advised on US$107 million ECA-backed financing for the construction and development of the first phase of a mixed use real estate development.
Insights & Updates
Nigerian Eurobonds - Key Contractual Terms and Considerations for Investors
The possibility that a sovereign will default on its sovereign debt or will seek to restructure its sovereign debt to forestall the occurrence of a sovereign default, despite a perception of creditworthiness, is a very real one.
Bail-in Powers of the Central Bank of Nigeria - Key Legal Issues for Bank Creditors
The recent introduction by the extant Banks and other Financial Institutions Act 2020 ( the "Act") of Bail-in, as a tool for resolving bank insolvency, is a critical discussion point for the comity of international lenders, lending to Nigerian banks and other financial institutions. This is especially important given the wide implications that the Nigerian regulatory construct of the Bail-in procedure has for the contractual and property rights of bank creditors.
Turnover and Control Considerations for Merger Clearance in Nigeria
In a recent mergers clearance filing, which we undertook and successfully concluded on behalf of a South African Power and Infrastructure Conglomerate,[1] the FCCPC[2] agreed with our pre-notification submissions regarding the application of IFRS 10 towards the calculation of the relevant turnover. The object of the pre-notification submission was to, amongst others, avoid double-counting and to positively impact the amount payable as notification fees towards mergers clearance.
Which Banks & Private Equity Firms are exempted from Merger Clearance under Section 92(3)?
Section 92(3) of the Federal Competition and Consumer Protection Act ( the “Act”) suggests that, certain types of "acquisition" transactions by banks and private equity/ venture capital firms[1] (“Private Equity Firms") will be exempt from merger by the Federal Competition and Consumer Protection (the "Commission"/"FCCPC").
Mini-Bid Licensing Rounds 2022 - A Highlight of the Bid Submission Regulations for Offshore Petroleum Prospecting Licenses in Nigeria
On December 21, 2022, the Federal Government of Nigeria through the Nigerian Upstream Petroleum Regulatory Commission (the “Commission”) announced licensing rounds for seven (7) offshore blocks covering an area of approximately 6,700 km2 in water depths of 1,150m to 3,100m. This legal update summaries the legal framework, bidding procedure and the eligibility requirements for participating in the licensing round.
Avoiding Permanent Establishment Risk - Nigeria's New Dependent Agents Rule
Presidential Order 5 has thrown up an array of contracting structures between local promoters and foreign OEMs and partners looking to bid for government contracts. These contractual arrangements are increasingly subject to litigation both from a taxation point of view and from the standpoint of counterparty liability and risk. Nigeria wholly consumes foreign technology, and as such, it is expected that such collaborations will continue.
Operational Guidelines for Representative Offices of Foreign Banks
Challenger banks now have a window to establish a representative office in Nigeria. This is because of the newly proposed CBN Guideline on the Regulation of Representative Offices of Foreign Banks in Nigeria (the “Regulations”).
What is a Permanent Establishment? Do you Have One?
If a foreign business has a Nigeria permanent establishment (PE) then the profits of the business that are attributable to that PE, either directly or indirectly, are chargeable to Nigeria tax.
Avoiding Permanent Establishment Risk - Nigeria's New Dependent Agents Rule
Presidential Order 5 has thrown up an array of contracting structures between local promoters and foreign OEMs and partners looking to bid for government contracts. These contractual arrangements are increasingly subject of litigation both from a taxation point of view and from the standpoint of counterparty liability and risk. Nigeria wholly consumes foreign technology and as such it is expected that such collaborations will continue.
Rising Inflation & the Interest Rate Hike by The Central Bank – A Primer
There has been a palpable increase in the prices of goods and services in Nigeria, in recent time. The Central Bank of Nigeria (the “CBN”) is now taking steps to address the situation and to maintain price stability[1]. One of the steps the CBN has taken to is to increase the Monetary Policy Rate, by 150 basis points, from 11.5% to 13%.On July 19, 2022, for the second time in the year, the MPC hiked the Monetary Policy Rate by 100bps to 14.00%.
A Highlight of Development Finance Programmes by the Central Bank of Nigeria
In furtherance of its developmental functions under section 31 of the CBN Act, the Central Bank of Nigeria (the “CBN”) has vastly expanded its lending programs to the private sector in a bit to expand productive capacity, locally. The below summarises some of the key intervention programmes of the CBN across sectors
Private Equity Co-Investments - The New Regulations for Pension Funds
Nigeria’s Pension Regulator, Pencom, has recently issued regulations permitting pension funds to co-invest in private equity funds with the expectation that, allowing pension funds to co-invest with qualifying private equity funds will increase pension fund exposure to private equity. Expectedly, the Regulations prescribe minimum co-investment requirements, with the intent of ensuring the safety of retirement savings.