In spite of the ill health of the nation’s economy, Union Bank of Nigeria Plc. (Union Bank) announced that the it has successfully raised N49.7 billion through a Rights Issue which closed on October 30, 2017 with subscriptions recorded at 120 per cent.
The Central Bank of Nigeria (CBN) and Securities and Exchange Commission (SEC) concluded the share allotment and capital clearance review in December 2017.
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 five years. With 20 per centoversubscription 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.
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.
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.