BusinessUpdate

UBA Sets To Raise N239.4 Billion Through Rights Issue

By update Nov 15, 2024 #Cover
Group Chairman, United Bank for Africa and TEF, Tony ElumeluGroup Chairman, United Bank for Africa and TEF, Tony Elumelu

Group Chairman,  United Bank for Africa, Tony Elumelu
Group Chairman, United Bank for Africa, Tony Elumelu

Africa’s Global Bank, 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 opens on 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.

United Bank for Africa Plc is a leading Pan-African financial
institution, offering banking services to more than forty-five million
customers, across 1,000 business offices and customer touch points
in 20 African countries. With a unique international presence in New
York, London, Paris and Dubai, UBA is connecting people and
businesses across Africa and globally, through retail, commercial,
corporate and institutional banking, innovative cross-border
payments and remittances, trade finance and related banking

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