AIG invests in Nigerian microfinance platform

Amid uncertainty over how the government bailout of its parent company will affect its future, AIG Investments closed a deal yesterday with an undisclosed investment in Blue Intercontinental Micro Finance Bank.

As speculation swirls over its fate, AIG Investments, the asset management arm of insurance giant American International Group, has invested in Nigerian microfinance platform Blue Intercontinental Micro Finance Bank.

According to an AIG Investments spokeswoman, the undisclosed equity investment closed yesterday, just a day after the US Federal Reserve announced an $85 billion bailout (€59 million) of AIG in which the government purchased an 80 percent ownership stake in the insurance company.

The investment, funded by AIG’s $825 million second emerging markets fund, is part of a joint venture between AIG portfolio companies Intercontinental Bank and Blue Financial Services aimed at distributing and selling micro-finance services in Nigeria’s retail market.

Blue has purchased a 55 percent stake in the new entity, while Intercontinental and AIG have taken stake of 35 percent and 10 percent, respectively, according to the spokeswoman.

Earlier this month, Intercontinental opened its first subsidiary in the UK.