MAY 24 2017: CORPORATE NEWS: UBA AND UAC TO RAISE NEW MONEY, etc
UNITED BANK FOR AFRICA PLC TO RAISE $500m
United Bank for Africa (UBA) yesterday formally announced its plans to raise $500m through Eurobond unsecured medium term notes to be listed on the Irish stock exchange.
According to company secretary, Bill A Odum, the plan already has go ahead from the Central bank Of Nigeria and the Securities and Exchange Commission.
The net proceeds of the issue will be paid into UBA's foreign currency dormicilliary account and only converted into Naira if and when situation warrants the bank to.
Hence, there will be no certificate of capital importation (CCI) for the money except any part of it the bank decides to convert into Naira eventually.
Consequently too, the loan will be repaid and serviced without recourse to the Nigerian inter bank foreign exchange market unless condition makes the bank's foreign reserves inadequate to meet these obligations as they occur in future. In such cases, a formal approval of the CBN will be sort to access the inter-bank.
According to UBA, the money is not tied to any particular project but will be deployed in its general banking operations as boost to liquidity.
UAC OF NIGERIA TO ISSUE N15.4bn RIGHTS
Shareholders of UAC Of Nigeria (UACN) will soon be asked to cough out N15,4bn in new capital if they approve of the request by the directors of the company at the next annual general meeting.
The money is needed, says UACN to support subsidiaries in these trying times and position the group to play new opportunities to sustain shareholder value and returns.
It explained that business has been hit negatively by the volatility in the foreign exchange rates; the double digit inflation rates; interest rate hikes and liquidity constraints at a time when the average consumer purchasing power was declining.
In view of this, different subsidiaries suffered in different ways but with resultant effects on the bottom line and liquidity position. Hence, on their part, UACN Property Company PLC is to raise N5.2bn through Rights issue; General Cereals is also raise N7bn by Rights and Livestock Feeds will be seeking N0.75bn more too.
In all of them, UACN needs to come up with enough cash to retain its shareholding % in them which is part of the reason for the N15.4bn Rights on the cards.
In 2015, shareholders had approved a different strategy to recapitalise the group. It was resolved that N15bn be raised through private placement; and N5bn through Rights. However, the board of directors from the private placement option not cost efficient and decided to forgo it and go all out for raising the needed money through Rights alone.
ECOBANK TRANSNATIONAL GETS NEW DIRECTOR
A new executive director has been co-opted by Ecobank Transnational Incorporated (ETI) on to its board of directors in the person of Mr Greg Davis.
According to Mirelle Bokpe Anoumou, Snr Commuications officer, ETI; Mr Davis was co-pted following his elevation as group chief financial officer.
Davis joined ETI in 2016 from Standard Bank Africa where he was the CFO in chjarge of all Standard bank's operations outside South Africa.
Before then, he was Finance director, corporate banking Africa, Barclays Bank after other top level stints with Barclays Western Europe retail; Barclays Global retail and PricewaterhouseCoopers.
He is a fellow of the Institute of Chartered Accountants of England and Wales and holds a bachelor in Economic and Social history from University of Leicester.
United Bank for Africa (UBA) yesterday formally announced its plans to raise $500m through Eurobond unsecured medium term notes to be listed on the Irish stock exchange.
According to company secretary, Bill A Odum, the plan already has go ahead from the Central bank Of Nigeria and the Securities and Exchange Commission.
The net proceeds of the issue will be paid into UBA's foreign currency dormicilliary account and only converted into Naira if and when situation warrants the bank to.
Hence, there will be no certificate of capital importation (CCI) for the money except any part of it the bank decides to convert into Naira eventually.
Consequently too, the loan will be repaid and serviced without recourse to the Nigerian inter bank foreign exchange market unless condition makes the bank's foreign reserves inadequate to meet these obligations as they occur in future. In such cases, a formal approval of the CBN will be sort to access the inter-bank.
According to UBA, the money is not tied to any particular project but will be deployed in its general banking operations as boost to liquidity.
UAC OF NIGERIA TO ISSUE N15.4bn RIGHTS
Shareholders of UAC Of Nigeria (UACN) will soon be asked to cough out N15,4bn in new capital if they approve of the request by the directors of the company at the next annual general meeting.
The money is needed, says UACN to support subsidiaries in these trying times and position the group to play new opportunities to sustain shareholder value and returns.
It explained that business has been hit negatively by the volatility in the foreign exchange rates; the double digit inflation rates; interest rate hikes and liquidity constraints at a time when the average consumer purchasing power was declining.
In view of this, different subsidiaries suffered in different ways but with resultant effects on the bottom line and liquidity position. Hence, on their part, UACN Property Company PLC is to raise N5.2bn through Rights issue; General Cereals is also raise N7bn by Rights and Livestock Feeds will be seeking N0.75bn more too.
In all of them, UACN needs to come up with enough cash to retain its shareholding % in them which is part of the reason for the N15.4bn Rights on the cards.
In 2015, shareholders had approved a different strategy to recapitalise the group. It was resolved that N15bn be raised through private placement; and N5bn through Rights. However, the board of directors from the private placement option not cost efficient and decided to forgo it and go all out for raising the needed money through Rights alone.
ECOBANK TRANSNATIONAL GETS NEW DIRECTOR
A new executive director has been co-opted by Ecobank Transnational Incorporated (ETI) on to its board of directors in the person of Mr Greg Davis.
According to Mirelle Bokpe Anoumou, Snr Commuications officer, ETI; Mr Davis was co-pted following his elevation as group chief financial officer.
Davis joined ETI in 2016 from Standard Bank Africa where he was the CFO in chjarge of all Standard bank's operations outside South Africa.
Before then, he was Finance director, corporate banking Africa, Barclays Bank after other top level stints with Barclays Western Europe retail; Barclays Global retail and PricewaterhouseCoopers.
He is a fellow of the Institute of Chartered Accountants of England and Wales and holds a bachelor in Economic and Social history from University of Leicester.
Comments
Post a Comment