United Bank for Africa (UBA) Plc has successfully raised N11.5 billion from the capital market through a rights issue.
The rights issue of one ordinary share for every existing 10 was made to shareholders at N3.50 per share. UBA said in a statement Tuesday that it has successfully completed the issue following the approval of Securities and Exchange Commission (SEC) and Central Bank of Nigeria (CBN).
According to the company, this additional equity, UBA has fortified its capital base ahead of the full implementation of BASEL II, which requires higher capital buffer for Banks, to accommodate credit, operational and market risks inherent in the business of financial intermediation.
Commenting on the issue, the Group Managing Director/CEO of the UBA Plc, Mr. Phillips Oduoza said: “I am pleased with the successful completion of this Rights Issue, as it provides further leverage to exploit our growth potential. On behalf of the Management of UBA, I appreciate the shareholders for their strong commitment towards the growth of our dear bank and for the unwavering confidence reposed in us in building a great Pan-African institution. We will remain true to our promise of delivering superior and sustainable return to all stakeholders over the near to long term, just as we are committed to the development of the African economies where we operate.”
Speaking in the same vein, the Group Chief Financial Officer, UBA Plc, Mr. Ugo Nwaghodoh said this additional equity provides further capital buffer for us to grow our business over the medium term, with a strong positive outlook on delivering our performance guidance for the year.”
UBA, in December 2014, had also successfully raised N30.5 Billion Tier-II Capital through the issuance of Seven-Year Fixed Rate Unsecured Notes, maturing in 2021.
The bank had also gone ahead to complete a dual listing of its corporate bond on the on the Financial Market Dealers Quotation Over-the-Counter (FMDQ-OTC)market and the NSE Nigerian Stock Exchange (NSE), the first Nigerian company to do so.
UBA, early this year, released its financial performance report for the first quarter of 2015, showing strong growth in earnings and profits.
The first quarter results for the period ended March 2015 shows earnings rose 22 per cent to N83 billion from N68 billion in the comparative period of 2014. Is is the operating income was also up a significant 17 per cent to N53 billion compared to N45 billion within the same period benefiting from higher yields on earnings assets.
UBA ended the period with a pre-tax profit of N18 billion, up 36 per cent from the comparable period of 2014.
The UBA Group is a highly diversified financial services provider and one of the largest financial institutions in Africa, with presence in New York, Paris and London.
UBA has a strong retail penetration across the African continent where it controls significant market share. Over eight million customers enjoy the bank’s robust bouquet of products and services, tailored to meet their financial needs. – Thisday.
