New York-based Milost Global has firmed up plans to invest up to $1bn in Nigeria’s Unity Bank through a combination of equity and debt.

The attempt to recapitalise the bank will involve an investment of $700m in equity and another $300m in five-year bonds, Bloomberg reported quoting an unnamed source.

Milost Global will secure an initial stake of about 30% percent in Unity Bank by providing its first equity investment amounting to $250m.

The remaining amount will be paid in multiple tranches over a period of four years, subject to Unity Bank’s capacity to issue sufficient shares to Milost.

People familiar with the matter told Bloomberg that first part of the deal can be completed in the second quarter of this year, subject to a due diligence and regulatory approvals.

Multiple small- and mid-sized Nigerian banks are struggling to rebuild their capital levels following a drop of oil prices that impacted the country’s economy with foreign-currency shortage.

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Headquartered in Abuja in Nigeria, Unity Bank was formed by the merger of nine financial institutions in 2006. It also has an operations base in Lagos, the commercial capital of the country.

In April last year, the bank announced that it is in talks to sell its non-performing loans to avoid regulatory penalty.

According to its annual report, Unity Bank’s share of non-performing assets stood at 48% in 2016.