Vbank, Artsplit Moves to Tap $400m African Art Industry with Loan Offering

Gilbert Ekwugbe

In a bid to tap into the African art industry estimated at $400 million, Nigeria’s leading digital bank managed by VFD Microfinance Bank, Vbank and Artsplit, an art trading technology company, have announced the launch of their new art based loan offering.

Speaking at a press conference to announce the offering, the Chief Executive Officer of Vbank, Gbenga Omolokun said the innovative financing initiative is intended to empower art collectors, galleries and dealers by allowing them access capital for a variety of purposes by leveraging the value of their artwork.

The Vbank art based loan, he stated, is a unique opportunity for art enthusiasts and businesses to maximize the value of their art collections without having to sell valuable assets.

According to him, “We are thrilled to introduce our art based loan offering, which bridges the gap between art and finance. Our ground-breaking solution enables  art collectors and businesses to maximize the value of their assets while maintaining ownership and control. We are confident that with Artsplit and AAM’s expertise and customized financing options, we can help our clients thrive in the dynamic art market.

“Vbank will offer the loan facility at 30 per cent/a with loan limits of N12 million and N60 million for individuals and corporates respectively. Artsplit will validate provenance, value the artwork and guarantee the loan at 3 per cent fee, custodian fee of 0.5 per cent and additional 1 per cent insurance charge.”

He added that the first-of-its-kind offering has several advantages, including flexible financing, where borrowers can obtain loans based on a percentage of the appraised value of their artwork, “Given them the flexibility to access capital. Secondly, we have Tailored Loan Terms, which is individually structured to meet borrowers unique needs and Preserved Ownership: borrowers retain ownership of their artwork throughout the loan.

“We also have Diverse Use of Funds where loan proceeds can be used for a variety of purposes, including the acquisition of new artwork, the expansion of art businesses, the support of exhibitions and the meeting of short-term liquidity needs.”