United Bank for Africa (UBA) Plc has announced the successful completion of its Rights Issue, following the approval of the Central Bank of Nigeria (CBN) and the Securities and Exchange Commission (SEC).

UBA raised N11.5 billion through a seasoned equity offering; a Rights Issue of one ordinary share for every existing ten units at a price of N3.50 each. The offer was fully subscribed by its shareholders.

With this additional equity, UBA has 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.

Speaking on the Rights Issue, the GMD/CEO of the UBA Plc, Mr. Phillips Oduoza 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.

UBA, in December 2014, had also successfully raised N30.5 billion Tier-II Capital through the issuance of Seven-Year Fixed Rate Unsecured Notes, maturing in 2021.

The bank had also gone ahead to complete a dual listing of its corporate bond on the Financial Market Dealers Quotation Over-the-Counter (FMDQ-OTC) market and the Nigerian Stock Exchange (NSE), the first Nigerian company to do so.

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

Daily Trust