Tony Elumelu is the Chaiman of United Bank for Africa (UBA) and also Chairman of Heirs Holding an African proprietary investment company.
Reading through notes from UBA’s recent FY 2015 results on page 108 under Loans and Advances to KEY MANAGEMENT personnel’s relatee persons and entities: Shows that Heirs holdings had an outstanding balance of N20.67 billion, up 30 percent from N15.9 billion in 2014.
UBA classifies the loan as performing and Heirs Holdings is a closely held private firm that does not release financials, so it is difficult to know its financial position.
The loan is a term loan and has an interest rate of 16 percent.
It is secured against Real Estate, according to the notes.
Would UBA have been comfortable loaning Heirs Holdings N20.6 billion if Tony Elumelu were not chairman of both companies?
The post above and its ensuing comments, if any, is purely the opinion of the writer(s). It therefore should never be considered as an investment advise of any sort. If required, readers should please consult a competent professional financial adviser for any investment decision.