Union Bank to Secure Approval for N50bn Rights Issue this Quarter

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The Chief Executive of Union Bank, Emeka Emuwa said the bank plans to raise N50 billion in fresh capital via a rights issue by the end of the year to boost lending and hopes to win approval from the Securities and Exchange Commission for the plan this quarter.

The mid-tier lender has obtained the go ahead from the central bank after shareholders approved the capital increase to support growth and meet regulatory requirements.

Union Bank last week posted a 5.9 percent rise in half-year pre-tax profit to N 9.46 billion. Shares in Union, down 4.7 percent so far this year, rose 1.15 percent on Monday to N 5.30. They shed 20.3 percent last year.

Emuwa told Reuters that Union Bank was targeting capital ratios of close to 20 percent after the rights issue, from around 15 percent now.

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