Union Bank N50b Rights Issue Records 20% Oversubscription

By Modupe Gbadeyanka

The N50 rights issue recently carried out by Union Bank of Nigeria was 20 percent oversubscribed by shareholders, the lender has confirmed.

In a statement issued by the bank, it said the N49.7 billion needed from the exercise was successfully raised.

Chief Executive Officer of Union Bank, Mr Emeka Emuwa, while commenting on the development, noted that the oversubscription showed the confidence investors have in the financial institution.

Union Bank is one of Nigeria’s long-standing and most respected financial institutions and it concluded on October 30, 2017.

The lender launched the N49.7 billion Rights Issue on September 20, 2017 with shares available to shareholders at the ratio of five new ordinary shares for every seven previously held as at August 21, 2017.

“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,” Mr Emuwa stated.

It was learnt 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.