TLG Capital (TLG) has purchased 49% of Opportunity Bank Uganda Ltd (OBUL). TLG’s investment was made via its Credit Opportunities Fund) and marks a continued focus on building and supporting SMEs in three core sectors: Healthcare, Financial Institutions, and Consumer Goods.
TLG has been an investor in Uganda for over a decade and other Ugandan investments include Cipla Quality Chemicals Ltd (pharmaceutical manufacturing), Vero Foods (water-bottling plant) and BAJ Service Stations (fuel retail).
The OBUL with about 300,000 customers offers tailormade products and services for individuals, micro-businesses, and small-and-medium sized enterprises boasts of 23 branches and 22 ATM points across Uganda.
The bank was originally a microfinance institution founded in 1995.
The transaction makes TLG the largest shareholder of OBUL. Remaining shareholders (all NGOs) include Opportunity International Group (43%), Faulu Uganda (7%), and Food for the Hungry (1%).
Isha Doshi, partner and CFO at TLG Capital said: “we are excited to welcome OBUL to the TLG family. Financial inclusion is a key aspect of development, and TLG looks forward to serving the unbanked and underbanked further. OBUL’s products such as the Boda Boda Loan (loan product for motorcycle riders who want to acquire or expand their business), WASH (water and sanitation loans) and the education and laptop loans fit perfectly with the impact that TLG aims to create.”
TLG believes that overlaying further digital technology within the bank’s product suite will expand the bank’s reach and lay a stronger pathway towards including those currently outside of the financial system. The expertise that TLG brings in terms of fintech will help OBUL progress effectively in this effort.
Phillip Karugaba, the Chairman of the OBUL Board of Directors, said he was excited and pleased with developments. “TLG Capital knows Uganda very well. We look forward to the synergies from working with TLG.”