Posted by By Goddy Egene on
Union Bank of Nigeria Plc has emerged the most capitalised bank in Nigeria, following the success of its recent recapitalisation drive.....
Union Bank of Nigeria Plc has emerged the most capitalised bank in Nigeria, following the success of its recent recapitalisation drive, which raked in over N55billion from its right issue and public offer respectively.
This represents N15billion above the target proceeds of N40billion.
A statement from the bank on Tuesday said that with an initial capital base of approximately N55billion, its cumulative shareholders' fund now stands at over N110billion.
With this development, UBN has overtaken Zenith Bank Plc, which has a capital base of N92.1billion after its recent public offer.
Capital market analysts ascribed the successful shares offer of UBN to investors' confidence and trust, which recently fetched the bank the Euromoney 2006 Award for Excellence as the Best Bank in Nigeria.
The public offer was 168.13 per cent subscribed, translating to an over subscription of N15.1billion. The initial target was N22billion. The rights issue was 100.1 per cent subscribed.
UBN explained that the right issue and the public offer were part of the long-term strategic plan designed to position it for the unfolding domestic and global challenges of banking business in the 21st century.
These challenges, according to the bank, include acquisition and deployment of state-of-the-art banking technology, branch expansion and upgrade, recapitalisation of Union Bank UK Plc and increasing working capital requirement.