Union Bank wants to raise USD164 million via rights issue

Bank

To bolster its thinning capital structure and lend to the real sector, Union Bank of Nigeria PLC will be looking at raising about NGN50 billion.

Approximately USD164 million using real time Forex rate, the cash will be raised via a rights issue.

Emeka Emuwa, the bank’s chief executive said the said the fund will be directed at lending to the agricultural sector of the Nigerian economy.

The bank said it is looking at keeping its capital ratio higher than 18 percent as opposed to 13% disclosed in the third quarter of 2016.

He added explained that “We see opportunities to leverage our capital not just to be in regulatory compliance but to be able to tap opportunities that we see in the medium term.”

“We see opportunities in agro-business, food processing, fast-moving consumer goods. Anything that is aligned with how the economy is evolving, manufacturing of consumer goods, manufacturing of goods by replacing what is previously being imported are areas where we see opportunities.” he added.

The Central Bank of Nigeria has since warned banks to ensure their capital adequacy ratio is within regulatory benchmark of about 15%. Several other banks are way below this mark which gives investors a lot of concern that some of these banks might go under any time soon.