UBA raises N11.5bn from rights issue

United Bank for Africa Plc has announced the completion of its rights issue, following the approval of the Central Bank of Nigeria and the Securities and Exchange Commission.
The bank raised N11.5bn through an equity offering; a rights issue of one ordinary share for every existing 10 units at a price of N3.50 each. The offer was fully subscribed by its shareholders.

 With this additional equity, UBA said it had 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.

The Group Managing Director, UBA, Mr. Phillips Oduoza, while speaking on the rights issue, 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.”

The bank had in December last year raised N30.5bn in tier-II capital through the issuance of seven-year fixed rate unsecured notes, maturing in 2021.
The bank has also completed a dual listing of its corporate bond on the Financial Market Dealers Quotation Over-the-Counter market and the Nigerian Stock Exchange, making it the first Nigerian company to do so.

“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,” the Group Chief Financial Officer, UBA, Mr. Ugo Nwaghodoh, said.

The first quarter results of the bank for the period ended March 2015 showed that its earnings rose by 22 per cent to N83bn from N68bn in the comparative period of 2014.


[Punch]