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Seven banks raise N125 billion from capital market

Posted by By Funmilayo Adebanjo on 2005/01/08 | Views: 294 |

Seven banks raise N125 billion from capital market

SEVEN banks have raised N125 billion from the capital market through public offers and private placements in five months, the Association of Corporate Affairs Managers of Banks (ACAMB) has said.

SEVEN banks have raised N125 billion from the capital market through public offers and private placements in five months, the Association of Corporate Affairs Managers of Banks (ACAMB) has said.

The association, however, did not specify the investment level into each of these banks.

ACAMB, in a thank you message to Nigerian investors had noted "for seven banks to have raised N125 billion by public offers and private placements in five months is commendable," adding, "it shows that Nigerian investors are very discerning in their business decisions."
The association also disclosed that that mass patronage of bank shares on the Stock Exchange, as well as during several public offers was very encouraging and revealed the high level of confidence investors had both in the banking industry and the Nigerian economy.

They also assured investors that their confidence on banks would not be taken for granted stressing that banks would continue to strive to post superior returns to stakeholders in the overall bid to develop the nation's economy.

ACAMB further urged investors to keep up their interest in banks by patronising public offers, which would soon hit the market.

The association also observed that the majority of their investors in the recently concluded public offer were first time investors in the capital market.

This development according to Mr. Lanre Alabi, the president of the association, was a living testimony that the banking sector was totally committed to energising the growth and competitiveness of every sector in the economy.

He also stated that in the last few months, banks had attracted foreign investments into the country.

He averred that the renewed focus of banks on the capital market as avenue for raising long-term capital had convinced discerning Nigerians on the need to take advantage of the capital market for securing their future and also that of their children.

They further commended banks that were approaching the capital market for additional capital; namely, Union Bank, UBA, EIB International Bank, and City Express Bank for believing in the nation's capital market.

It urged them not to entertain fears about the ability of the economy to absorb such offers.

The association in its statement affirms that the Nigerian economy is virile enough to absorb many more public offers from banks.

The recent resolve of all banks to voluntarily pursue full disbursement of the Small and Medium Investment Equity Scheme (SMIES) was also commended by ACAMB.

The association, however, restated that the real sector would be the greatest beneficiary of the on-going recapitalisation and transformation in the Nigerian banking industry. It commended the cooperation and understanding that the industrial sector had continued to display, in relation to the peculiar challenges that banks in the country were contending with.

However, members of the public, who subscribed to the shares offered by the various banks that recently accessed the capital market for funds were also appreciated by the association.

It implored Nigerian to extend similar patronage to other banks that were set to approach the stock market for capital.

While commending the resilience of all the banks in the face of mounting challenges, the association urged the executive management of banks in the country to remain steadfast in the pursuit of excellence and never waiver in delivering superior value to all stakeholders.

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Comments (3)

Abieyuwa(Edo, Nigeria)says...

Otasowie means evening life is better than morning life. There is an error in your “evening life is better than evening life”?

Naija g(Houston, Minnesota, US)says...

Sokari doesn’t mean joy. Joy is Biobela. Go to the village and ask the meaning of the name.

Fay(Katy, Texas, US)says...

Actually translates to bravehearted.