United Bank for Africa (UBA) Plc would issue 6,839,884,274 common shares of 50 kobo each at a price of N35.00 apiece in order to raise N239.4 billion.

One new ordinary share is being offered for every five existing ordinary shares owned by shareholders as of November 5, 2024, as part of the Rights Issue, which started today and allows current shareholders to buy more shares proportionate to their present holdings.

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Tony Elumelu, the Group Chairman of United Bank for Africa, wrote to the shareholders to inform them that UBA will launch a rights issue as the first phase of its larger capital raising program after the Group’s shareholders approved the creation of the N400 billion Equity Shelf Program at the Annual General Meeting in May 2024.

By issuing additional Ordinary Shares to our shareholders, UBA’s Rights Issue seeks to raise N239.4 billion. This Rights Issue’s main goal is to increase our ability to seize expansion opportunities and maintain our position as the banking industry’s leader, Elumelu stated.

Beyond regulatory compliance, the Group Chairman explained, the revenues would be used to promote sustainable business practices, increase the Group’s lending capacity, invest in digital infrastructure, and grow the Group’s activities in Africa.

Elumelu further emphasised how UBA is propelling Africa’s economic expansion. “Our dedication to promoting economic development is demonstrated by our historic partnership with the Secretariat of the Africa Continental Free Trade Area (AfCFTA), where UBA committed up to $6 billion in financing over the next three years to support eligible SMEs throughout Africa.”

The issue complies with the updated minimum capital requirements for Nigerian commercial banks that were previously announced this year by the Central Bank of Nigeria (CBN), the country’s top banking regulator.