By Tunde Osho
Union Bank of Nigeria has recorded a 20 percent oversubscription by shareholders in the N50billion rights issue recently carried out by the lender.
In a statement issued by the bank, the N49.7 billion needed from the exercise was successfully raised.
Chief Executive Officer of Union Bank, Mr. Emeka Emuwa, who commented on the development, noted that the oversubscription showed the confidence investors have in the financial institution.
The lender launched the N49.7 billion Rights Issue on September 20, 2017 with shares available to shareholders at the ratio of five new ordinary shares for every seven previously held as at August 21, 2017.
“The support of our shareholders has been critical to the rebuilding and transformation of Union Bank over the past 5 years.
“With 20 percent oversubscription of the bank’s Rights Issue, they have once again demonstrated a high level of confidence and support for the bank’s short to medium term strategic priorities.
“Having successfully raised the required capital, we will accelerate the pace of doing business in 2018 as we begin to deploy this fresh capital across identified business areas which will increase our capacity to serve customers better while also delivering returns to our investors in the short to medium term,” Mr Emuwa stated.