By Dipo Olowookere
The process of sourcing for N3.7 billion to increase the capital base of Abbey Mortgage Bank Plc has commenced and on Monday, the firm signed a deal with Kairos Capital Limited.
Abbey Mortgage Bank intends to inject fresh capital into the company through a rights issue and this is where the expertise of Kairos Capital, an issuing house, comes into play.
A total of N3,692,307,692 is expected to be raised from the exercise with proceeds to be used to grow the firm’s core business, which is lending for mortgages.
The funds would also be used for construction finance, SME lending and also used to strengthen the company’s business growth, deepen capital resources to selectively exploit value creation opportunities in the financial markets and support enlarged operations and broaden relationship management capabilities.
From the rights issue, Abbey Mortgage Bank wants to sell to existing shareholders of the company new stocks at the rate of 82 kobo each.
Abbey Mortgage Bank Plc a public limited liability bank incorporated and registered in Nigeria on 26 August 1991.
The financial institution obtained its license to operate as a mortgage bank on January 20, 1992, and commenced business on March 11, 1992.
It was later converted to a public limited liability company in September 2007 and on October 21, 2008, it became officially listed on the Nigerian Stock Exchange (NSE).
The principal activities of the Bank are the provision of mortgage services, financial advisory, and real estate construction finance.
