Africa’s global bank, United Bank for Africa (UBA), has disclosed plans to raise N239.4 billion through a Rights Issue of 6,839,884,274 ordinary shares of 50 kobo each at N35.00 per share.
While noting that the move was in compliance with the Central Bank of Nigeria (CBN) directive on the revised minimum capital requirements for financial institutions, the bank stated that under the new right issues, existing shareholders could purchase additional shares in proportion to their current holdings in the firm.
According to the bank, this is being offered based on one new ordinary share for every five existing ordinary shares held by shareholders, as of November 05, 2024.
The bank disclosed that the Rights Issue commenced on Friday, November 15, 2024, following the Group’s shareholders’ resolution reached during the Annual General Meeting.
The Group Chairman of UBA, Tony Elumelu, in a letter to the shareholders informing them of the kick-off, added that the resolution authorized the establishment of the N400 billion Equity Shelf Programme, UBA will embark on a Rights Issue, as the first step in its broader capital raising programme.
“UBA’s Rights Issue aims to raise N239.4 billion, through the issuance of new Ordinary Shares to our shareholders. The primary objective of this Rights Issue is to further strengthen our capacity to take advantage of growth opportunities and sustain our leadership in the banking industry,” Elumelu added.
Explaining the use of proceeds, the Group Chairman noted that, beyond regulatory compliance, the funds will expand the Group’s lending capacity, invest in digital infrastructure, support sustainable business practices, and expand the Group’s African operations.
Elumelu also highlighted how UBA is driving economic growth across Africa. “Our historic partnership with the Africa Continental Free Trade Area (AfCFTA) Secretariat, where UBA pledged up to US$6 billion in financing over the next three years to support eligible SMEs across Africa underscores our commitment to fostering economic development”.
UBA has consistently demonstrated growth and resilience, evidenced by the Group’s strong financial performance and recent recognition within the industry. UBA’s progressive dividend policy, which has seen an increase of 14.8% in annualised dividend yield has demonstrated the Group’s ability to reward shareholders consistently.
In 2023/2024, UBA won “Bank of the Year” Awards in eight of its subsidiaries – Cameroon, Chad, Ghana, Cote d’Ivoire, Mozambique, Republic of Congo; Sierra Leone; Tanzania, as well as the Regional Award for Africa and in 2024 has won World Best Frontier Markets Bank and Best SME Bank Africa.
Application for the provisional allotment of the Rights to the new ordinary Shares will be made exclusively through the NGX e-offer portal during the offer period, while existing shareholders may also apply for additional shares above their provisional allotment as described in the Provisional Allotment Letter. Shareholders who are customers of the Bank are also encouraged to access their Rights through UBA’s internet banking and mobile banking channels.
