Nigeria’s Unity Bank Raises $117m From Stock Sale

September 26, 2014 Onyedimmakachukwu Business, Finance/Money

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VENTURES AFRICA – Nigerian lender Unity Bank has raised N19.23bn ($117.4 million) from sale of shares to existing shareholders in a bid to bolster its capital base and finance working capital as the country’s Central Bank implements stricter international regulations.

The 38.45 billion shares, sold at N0.50 each, was oversubscribed, with the bank to saying it will refund excess subscription monies to shareholders.
Reuters reports that Nigeria’s Central bank has asked lenders to convert to stricter international capital requirements, meaning that several of them would have to raise funds this year as the new rules would see capital levels drop by 100-400 basis points to near the regulatory minimum of 16 percent, analysts have said.
A rival lender, Access Bank said last week that it will seek shareholders’ support through an October 13 vote for its bid to raise N68 billion ($416 million) via a rights issue.