Skye Bank of Nigeria received a huge boost when they surged to the top of the Nigerian Stock Exchange All-Share Index with trading in almost 58 million shares.
Stocks closed up 9.1 percent to 72 kobo in Lagos which was their highest in a while. This sudden surge was due to reports that a major debtor was about to repay the loan granted them.
Skye Bank had been in dismal form recently ultimately leading to the Central Bank of Nigeria replacing most of its top management on July 4 with regulators. The CBN stated that it worried about liquidity and non-performing loans as the rationale to coming to their decision.
Integrated Energy Distribution and Marketing is the Electric company whom reports say could be helping Skye Bank out of the mess they’ve found themselves recently.
According to Thisday, Integrated Energy was able to negotiate a compensation fee of about $86m from the Nigerian Government after returning Yola Disco to them.
The return was due to inability to operate the asset due to the insurgency occurring in that part of the nation.
Bloomberg reports that Omotola Abimbola, a banking analyst at Afrinvest West Africa Ltd., said on the matter “Getting the refund and paying back the loan to Skye Bank means it can recover,
“Some short-term investors feel that the stock is a bargain opportunity at current price and with the news that Integrated Energy could settle its liabilities.”