Union Bank’s right issue records 120% subscription
Plans to deploy the new capital across identified business areas
Temitope Joseph | Tuesday, 09 January 2018 2:04pm | business
Union Bank, one of Nigeria’s long standing financial institutions has successfully raised N50billion through a right issue which closed on October 30th 2017, with subscriptions recorded at 120%.
This was achieved following a concluded share allotment and capital clearance review by the Central Bank of Nigeria, CBN and the Securities and Exchange Commission, SEC in December 2017.
Contained in a circular from the bank, Emeka Emuwa, Chief Executive Officer of Union Bank, said, “The support of our shareholders has been critical to the rebuilding and transformation of Union Bank over the past 5 years.
"With 20% oversubscription of the Bank’s Rights Issue, they have once again demonstrated a high level of confidence and support for the bank’s short to medium term strategic priorities".
Obtained by thebusinesspost.ng on Tuesday, Emuwa added: “Having successfully raised the required capital, we will accelerate the pace of doing business in 2018 as we begin to deploy this fresh capital across identified business areas which will increase our capacity to serve customers better while also delivering returns to our investors in the short to medium term.
“The new capital will also ensure the bank maintains a strong buffer above regulatory capital adequacy requirements as it drives towards its vision to be Nigeria’s most trusted and reliable banking partner”.
However, Union Bank launched the N49.7 billion Rights Issue on September 20, 2017 with shares available to shareholders at the ratio of five new ordinary shares for every seven previously held as at August 21, 2017.