Union Bank gets SEC’s approval to raise N50bn new capital

Union Bank of Nigeria (UBN) Plc has received approvals from the Securities and Exchange Commission (SEC) to move forward on raising Tier 1 capital through supplementary offer to existing shareholders.

Union Bank plans to offer 12.1 billion ordinary shares of 50 kobo each at N4.10 per share. The shares will be pre-allotted to shareholders on the register of the bank as at the close of business on August 21, 2017 on the basis of five new shares for every seven shares held.

Union Bank stated that it anticipates that the rights issue will be open for subscription in September 2017.

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Commenting on the SEC approval, Chief Executive Officer, Union Bank of Nigeria (UBN) Plc, Mr. Emeka Emuwa, said the approval of the rights issue by SEC brings the parties to the final stages of the pre-offer process.

He described the rights issue as an “important transaction for Union Bank which is critical to our short to medium term business objectives”.

Chapel Hill Advisory Partners Limited is Lead Issuing House to the Bank while FSDH Merchant Bank Limited and Stanbic IBTC Capital Limited are Joint Issuing Houses.

Union Bank was established in 1917 and listed on the Nigerian Stock Exchange in 1971.

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