Baobab MFB to raise capital base to N5bn
The Managing Director and Chief Executive Officer, Baobab Microfinance Bank, Kazeem Olarenwaju, has stated that the bank will beat the September 2019 recapitalisation deadline set by the board of the bank.
In a statement, Olarenwaju who disclosed this at the bank’s customer forum in Lagos, said the bank had several offers that would take its capital base from the current N2.9bn to N5bn.
While saying that the banks would continue to grow and be profitable, he added that the bank had between January to December 2018, grown its loan book by almost 65 per cent.
He equally said that the customer deposits had also increased to over N3bn.
He said, “The timeline the board had set was September this year, to make sure that the bank was fully recapitalised to N5bn. However, let me also say that all the shareholders are very eager to make their contribution and I think it is just a matter of how is it going to be done.
“Interestingly, I have four banks in Nigeria who are willing to pay the remaining part of our capital; they made that proposal to us. We also have the Nigerian Stock Exchange saying they want to do it for us. We also have a lot of financial houses who said they want to raise bond and all that.
“When I look at the performance of the bank in the last one year, only a stupid shareholder will not take his or her rights because I can tell you that our earning has grown more than 500 per cent. So, I can tell you that all our shareholders will be interested in taking up their rights and you know by regulation, we have up to April 2020 to capitalise.
“The other thing that we are looking at is that given what has happened last year, by the time we end this year, it is most likely that we will be close to that capital base even with our profit without anybody making any contribution.”
He reassured the bank’s commitment to ensure safe and convenient banking for their customers in order to make them experience a seamless transaction.