By Yakubu LAAH InvestAdvocate

Lagos (INVESTADVOCATE)-Africa’s global bank, United Bank for Africa Plc (UBA) on Friday said it has commenced the process of shoring up its tier one capital by way of rights issue, it said an issuer’s announcement to the Nigerian Stock Exchange (NSE).

UBA said this is coming on the heels of its shareholders and board of directors’ resolution authorising the bank to raise additional capital by various means, including a rights issue.

The Nigerian lender affirmed the rights issue will be on the basis of One (1) new ordinary share for every Ten (10) ordinary shares held as at a date to be announced and subject to regulatory approval.

The bank said it will communicate further information on the proposed offer to shareholders and other stakeholders in due course upon receipt of regulatory approval.

Another Nigerian tier one lender, Access Bank Plc has announced its proposal to shore up its share capital through a rights issue as well. Access Bank will on Monday October 13, 2014 hold extraordinary general meeting (EGM) in Lagos Nigeria to seek shareholders approval to raise N68 billion.

Access Bank which said it will open its China unit mid-October; also is seeking expansion to the Middle East and Asia.

The bank will open its proposed rights issue at N8.90 kobo per share and will issue 7.640 million ordinary shares of 50 kobo each.

Access Bank affirmed the proposed rights issue will be on the basis of one (1) ordinary share for every three (3) fully paid ordinary shares held by shareholders of the bank.