Union Bank gets SEC nod on N50bn rights issue

Union Bank Plc has received approval from the Securities and Exchange Commission (SEC) to float a N50 billion rights issue.

The lender, in a statement, said it anticipated that the rights issue would be open for subscription in September 2017.

During the offer period, 12.1 billion ordinary shares of 50 kobo each would be available at N4.10 per share, on the basis of five new shares for every seven shares held.

The qualification date for the rights issue, which had already been announced by the Nigerian Stock Exchange, is August 21, 2017.

Commenting on the SEC approval, Mr. Emeka Emuwa, Chief Executive Officer said, “The approval of the Securities and Exchange Commission brings us to the final stages of this important transaction for Union Bank which is critical to our short to medium term business objectives. The capital raised from the rights issue will support our strategy to accelerate business growth and position Union Bank as a leading commercial bank in Nigeria.”

Chapel Hill Advisory Partners Limited is Lead Issuing House to the bank; and FSDH Merchant Bank Limited and Stanbic IBTC Capital Limited are Joint Issuing Houses.

Established in 1917 and listed on the Nigerian Stock Exchange in 1971, Union Bank of Nigeria Plc is a household name and one of Nigeria’s long-standing and most respected financial institutions.

The bank is a trusted and recognisable brand, with an extensive network of over 300 branches across Nigeria.