(lavoixdesentreprises.info) – On November 15, United Bank for Africa (UBA) announced a capital increase of $144 million. This initiative aims to meet the new regulations set by the Central Bank of Nigeria and to strengthen its growth strategy across the African continent.
The United Bank for Africa Group (UBA), one of Nigeria’s leading banking institutions, has recently implemented a capital increase estimated at around $144 million. This operation, announced on November 15, comes in a context where the Central Bank of Nigeria has imposed new minimum capital requirements. These regulatory adjustments aim to ensure that banks have the necessary resources to support economic development, particularly after recent fluctuations in the naira.
To execute this capital increase, UBA plans to issue 6.84 billion ordinary shares, exclusively offered to its current shareholders, at a unit price of 35 naira. This operation allows shareholders to receive one new share for every five shares already held, thereby increasing their stake in the bank’s capital.
In a communication to shareholders, UBA Chairman Tony Elumelu emphasized that this initiative is part of a broader recapitalization framework set at 400 billion naira. This program was approved by shareholders during the bank’s annual general meeting in May 2024. Elumelu stressed that the funds raised will not only meet regulatory requirements but also enhance the bank’s lending capacity. This includes investments in essential digital infrastructure, promoting sustainable business practices, and expanding UBA’s operations across the African continent.
The new guidelines from the Central Bank, communicated on March 28, 2024, stipulate that banks operating internationally must increase their minimum capital to 500 billion naira (approximately $370 million). For institutions limited to national operations, the threshold is set at 200 billion naira, while regional banks must reach 50 billion naira. Consequently, over 20 Nigerian banks must raise additional funds over the next two years to comply with these new standards.
UBA is not limited to its activities in the Nigerian market. The group is also present in 19 African countries, including Ghana, Kenya, Senegal, Ivory Coast, Tanzania, and Uganda. Furthermore, the bank is expanding its international footprint with offices in France, the UK, the US, and Dubai. This strategy of regional and international expansion is crucial for UBA, which seeks to position itself as a key player in the African banking landscape.
In summary, UBA’s capital increase represents not only a response to new regulatory requirements but also a strategic step towards strengthening its position in the African market. The funds raised will support the institution’s growth, improve its services, and invest in technologies that promote a more modern and accessible banking experience. As the bank expands, it will continue to play a vital role in supporting African economies, thereby consolidating its reputation as a leader in the banking sector.
S.N.
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