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Nigeria: Union Bank to Raise 310 Billion Naira From Capital Market
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Vanguard (Lagos)
7 August 2008
Posted to the web 7 August 2008
Peter Egwuatu
Union Bank Nigeria Plc is set to raise over N301 billion from the Nigerian capital market, the highest amount to be raised by any bank in the history of the nation's capital market.
The bank intends to float a hybrid offering comprising offer for subscription of 7.3 billion ordinary shares of 50 kobo each at N36.00 per share and a Rights Issue of 1.4 billion ordinary shares of 50 kobo each at N35.00.
Managing Director/CEO of the bank, Dr. Barth Ebong told Vanguard, yesterday that both the Public Offering and Rights Issue are given at a discount of N6.00 and N7.00 per share, respectively.
The shares of the bank on the Nigerian Stock Exchange (NSE) has been on technical suspension and pegged at N42.00 per share since management of the bank submitted application to the Quotation Committee of the Exchange in respect of the proposed offer.
The reason for the technical suspension is in accordance with the NSE rule for companies seeking to raise funds from the capital market so as to prevent any person from taking undue advantage of the proposed offer.
The purpose of the offer, according to Ebong is to improve working capital, Information Technology (IT), improvement of branches, among others.
Union Bank of Nigeria Plc has been bringing a handful of unique consumer financial products and style of services to satisfy the yearnings and further create value for its teeming customers and prospective ones.
Ebong said that the products, which are technology-driven, include Union Ever - savings/current accounts based products; Union Life Time Accounts; Union Plus - consumer credit finance loan products; and Union Galaxy - the electronic banking package.
In these categories are bouquet of products, specifically developed to satisfy the yearnings of the different customer segments such as Money Line (Cashmaster), Importers Express Account, Distributor Commodity Link Account, Union Elite Account and Association Account (U-Trade).
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According to him: "The products have value-added features and benefits such as greater account flexibility, higher interest rate yields, portfolio management services, insurance covers for account holders, bonus interest, concessionary rates for commission on turnover and direct linkage of deposits with loans, among others."
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