By Chinyere Joel-Nwokeoma
The Central Bank of Nigeria (CBN) and Securities and Exchange Commission (SEC) have concluded share allotment and capital clearance assessment of the N50 billion rights situation of Union Bank of Nigeria.
The financial institution mentioned in an announcement in Lagos that the share allotment and capital clearance assessment by the regulators was concluded in December 2017.
It mentioned that the rights situation, which closed on Oct. 30, 2017, recorded 120 per cent subscription.
The assertion quoted Mr Emeka Emuwa, the financial institution’s Chief Executive Officer, as saying that the help of its shareholders had been essential to the rebuilding and transformation of the financial institution prior to now 5 years.
Emuwa mentioned that the 20 per cent over subscription of the rights situation demonstrated shareholders’ excessive degree of confidence and help for the financial institution’s quick to medium time period strategic priorities.
He mentioned that the financial institution would speed up the tempo of doing enterprise in 2018 having efficiently raised the required capital.
Emuwa mentioned that the financial institution would start deployment of the contemporary capital throughout recognized enterprise areas to extend capability to serve clients higher.
“Having efficiently raised the required capital, we’ll speed up the tempo of doing enterprise in 2018 as we start to deploy this contemporary capital throughout recognized enterprise areas which can enhance our capability to serve clients higher, whereas additionally delivering returns to our traders within the quick to medium time period.
“The new capital may even be sure that the financial institution maintains a powerful buffer above regulatory capital adequacy necessities because it drives in direction of its imaginative and prescient to be Nigeria’s most trusted and dependable banking accomplice,’’ he mentioned.
The News Agency of Nigeria (NAN) experiences that Union Bank launched the N49.7 billion rights situation on Sept. 20, 2017 to shareholders on the ratio of 5 new odd shares for each seven beforehand held as at Aug. 21, 2017.
The rights situation prospectus confirmed that 80 per cent of the provide proceeds could be used as working capital, 12 per cent to be invested in know-how, innovation and digitalisation.
The provide doc additionally confirmed that the remaining eight per cent of the proceeds could be invested in buyer contact factors. (NAN)