UBA Launches N239.4 Billion Rights Issue to Fuel Growth and Expansion Across Africa
United Bank for Africa (UBA) Plc, one of Africa’s leading financial institutions, has announced plans to raise N239.4 billion through a Rights Issue of 6.84 billion new ordinary shares, priced at N35.00 per share. This move is part of the bank’s broader capital raising strategy aimed at strengthening its financial position and expanding its footprint across the continent.
The Rights Issue, which opened on Friday, November 15, 2024, offers UBA’s existing shareholders the opportunity to purchase additional shares in proportion to their current holdings. Shareholders can acquire one new ordinary share for every five shares they already hold, based on the shareholder register as of November 5, 2024.
In a letter to shareholders, UBA Group Chairman Tony Elumelu emphasized that this Rights Issue is the first step in the bank’s ambitious N400 billion Equity Shelf Programme, approved by shareholders at the Annual General Meeting (AGM) in May 2024. Elumelu stated that the primary goal of the Rights Issue is to further strengthen UBA’s capacity to seize growth opportunities and reinforce its leadership in the African banking sector.
“The funds raised through this Rights Issue will help us expand our lending capacity, invest in cutting-edge digital infrastructure, support sustainable business practices, and continue to grow our operations across Africa,” Elumelu said. “This is all in line with our long-term strategy to foster economic growth and innovation on the continent.”
A key focus of UBA’s capital raise is its commitment to economic development across Africa. Elumelu highlighted the bank’s historic partnership with the African Continental Free Trade Area (AfCFTA) Secretariat, where UBA has pledged up to $6 billion in financing over the next three years to support eligible small and medium-sized enterprises (SMEs) across the continent. This collaboration underscores UBA’s dedication to fostering trade, business expansion, and economic integration in Africa.
The funds from the Rights Issue will also ensure UBA meets regulatory capital requirements set by the Central Bank of Nigeria (CBN) earlier this year, further solidifying the bank’s ability to operate as a leading financial institution in Nigeria and across Africa.
UBA has demonstrated consistent growth and resilience, backed by a strong financial performance. The bank’s progressive dividend policy, which has delivered an annualized 14.8% dividend yield, reflects its commitment to rewarding shareholders. In 2023/2024, UBA received numerous accolades, including “Bank of the Year” awards across eight subsidiaries in countries such as Cameroon, Ghana, and Tanzania, as well as regional recognition for its achievements in Africa.
Additionally, in 2024, UBA was named the “World’s Best Frontier Markets Bank” and “Best SME Bank in Africa,” affirming its position as a global leader in banking innovation and service delivery.
Shareholders who wish to participate in the Rights Issue can apply for their provisional allotment exclusively through the NGX e-offer portal during the offer period. Additionally, UBA shareholders who are customers of the bank are encouraged to use the bank’s internet banking and mobile banking platforms for a seamless application process.
