Subscription for Abbey Mortgage Bank Rights Issue Begins

By Dipo Olowookere

Abbey Mortgage Bank Plc has commenced subscription for the much-awaited N3.0 billion rights issue. The exercise started last week and would end next month.

The lender is planning to sell to shareholders a total of 3,692,307,691 units of the company’s equities at a unit price of 82 kobo.

The shares would be allotted to investors with the shares of the organisation as at the close of business on October 8, 2020, on the basis of four new ordinary shares for every seven ordinary shares held by them.

In a notice issued by the Nigerian Stock Exchange (NSE), it was disclosed that the exercise precisely kicked-off on Monday, January 4, 2021, and will wrap up Thursday, February 11, 2021.

Abbey Mortgage Bank is a primary mortgage bank with a licence from the Central Bank of Nigeria (CBN) to provide banking services in personal savings and investments, cash management, specialized banking, deposit and funds management, children and school account services, real estate and mortgage services, amongst others.

It also engages in loans, mortgages and banking services to corporate and individual customers and the firm said it is passionately involved in providing shelter to its customers being an accredited PMB for the National Housing Fund (NHF) and a subscriber to the recently created Nigerian Mortgage Refinance Company Plc (NMRC).

Business Post gathered that proceeds from the rights issue would be used to boost the company’s capital and grow its 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.

The stock price of Abbey Mortgage Bank has remained static at N1.05 per unit at the exchange for several months, with a Below Listing Standard (BLS) tag.