UBA To Raise N239.4bn Through Rights Issue

 …Shareholders To Get One New Share For Five Existing Shares

The United Bank for Africa (UBA) Plc will raise N239.4 bil­lion through a Rights Issue of 6,839,884,274 ordinary shares of 50 kobo each at N35.00 per share.

The Rights Issue, which opened today, Friday, Novem­ber 15, 2024, gives existing shareholders the opportunity to purchase additional shares in proportion to their current hold­ings and is being offered based on one new ordinary share for every five existing ordinary shares held by shareholders, as of November 05, 2024.

In his letter to the sharehold­ers informing them, the Group Chairman of United Bank for Africa, Tony Elumelu, noted that following the resolution of the Group’s shareholders at the Annual General Meeting held in May 2024, authorising the establishment of the N400 billion Equity Shelf Programme, UBA will embark on a Rights Issue, as the first step in its broader capi­tal raising programme. ­

“UBA’s Rights Issue aims to raise N239.4 billion, through the issuance of new Ordinary Shares to our shareholders. The primary objective of this Rights Issue is to further strengthen our capacity to take advantage of growth opportunities and sus­tain our leadership in the bank­ing industry,” Elumelu said.

Explaining the use of pro­ceeds, the Group Chairman not­ed that, beyond regulatory com­pliance, the funds will expand the Group’s lending capacity, investment in digital infrastruc­ture, support sustainable busi­ness practices and expanding the Group’s African operations.

Elumelu also highlighted how UBA is driving economic growth across Africa. “Our his­toric partnership with the Afri­ca Continental Free Trade Area (AfCFTA) Secretariat, where UBA pledged up to US$6 billion in financing over the next three years to support eligible SMEs across Africa underscores our commitment to fostering eco­nomic development”.

The issuance is in compli­ance with the revised mini­mum capital requirements for Nigerian commercial banks announced by the apex bank­ing regulator in Nigeria – the Central Bank of Nigeria (CBN), earlier this year.

UBA has consistently demon­strated growth and resilience, ev­idenced by the Group’s strong fi­nancial performance and recent recognition within the industry. UBA’s progressive dividend poli­cy, which has seen an increase by 14.8% annualised dividend yield has demonstrated the Group’s ability to reward shareholders consistently. In 2023/2024, UBA won ‘Bank of the Year’ Awards in eight of its subsidiaries – Cam­eroon, Chad, Ghana, Cote d’Ivo­ire, Mozambique, Republic of Congo; Sierra Leone; Tanzania, as well as the Regional Award for Africa and in 2024 has won World Best Frontier Markets Bank and Best SME Bank Africa.

Application for the provision­al allotment of the Rights to the new Ordinary Shares will be made exclusively through the NGX e-offer portal during the offer period, while existing shareholders may also apply for additional shares above their provisional allotment as de­scribed in the Provisional Allot­ment Letter. Shareholders who are customers of the bank are also encouraged to access their Rights through UBA’s internet banking and mobile banking channels.