Union Bank’s Rights Issue records N9.94bn oversubscription

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Union Bank of Nigeria Plc has recorded N9.94 billion or 20 per cent over subscription in its Rights Issue.  This indicates that the bank attracted N59.64billion from its shareholders, indicating increased confidence in the bank.
The bank disclosed this in a statement, issued yesterday saying it has successfully raised N49.7 billion through a Rights Issue which closed on October 30, 2017 with subscriptions recorded at 120 percent. The bank stated that the Central Bank of Nigeria (CBN) and Securities and Exchange Commission (SEC) concluded the share allotment and capital clearance review in December 2017.
In his comments, Chief Executive Officer, Union Bank Plc, Mr. Emeka Emuwa said: “The support of our shareholders has been critical to the rebuilding and transformation of Union Bank over the past 5 years. With 20 percent oversubscription of the Bank’s Rights Issue, they have once again demonstrated a high level of confidence and support for the bank’s short to medium term strategic priorities.
Having successfully raised the required capital, we will accelerate the pace of doing business in 2018 as we begin to deploy this fresh capital across identified business areas which will increase our capacity to serve customers better while also delivering returns to our investors in the short to medium term.”
He further stated that the new capital will also ensure the bank maintains a strong buffer above regulatory capital adequacy requirements as it drives towards its vision to be Nigeria’s most trusted and reliable banking partner.

Source: Vanguard

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