Lagos, Nigeria – November 15, 2024 – United Bank for Africa (UBA) Plc has announced plans to raise N239.4 billion through a rights issue offering 6.8 billion new shares, each priced at N35.00, to existing shareholders. The rights issue, which opened on November 15, 2024, provides an opportunity for shareholders to purchase additional shares in proportion to their existing holdings, based on a ratio of one new share for every five shares held as of November 5, 2024.
This capital raise forms part of UBA’s broader N400 billion Equity Shelf Programme, first authorized by shareholders at the bank’s Annual General Meeting in May 2024. According to Tony Elumelu, UBA’s Group Chairman, the rights issue is the first step in a larger capital-raising strategy designed to strengthen the bank’s financial position and fuel its growth in the competitive banking sector.
Purpose of the Capital Raise
Elumelu explained that the proceeds from the rights issue will be used to enhance UBA’s lending capacity, invest in digital infrastructure, and support the expansion of its operations across Africa. The funds will also help the bank comply with regulatory capital requirements set by the Central Bank of Nigeria (CBN). UBA’s proactive focus on digital transformation and sustainable business practices is expected to further solidify its leadership position in the African banking market.
“Beyond regulatory compliance, these funds will empower us to pursue significant growth opportunities, expand our footprint in Africa, and reinforce our commitment to driving economic development across the continent,” Elumelu added.
UBA’s efforts to support economic growth in Africa were further demonstrated by its partnership with the African Continental Free Trade Area (AfCFTA) Secretariat, where the bank has pledged up to $6 billion in financing over the next three years to support eligible SMEs across the continent.
Strong Performance and Recognition
UBA has a track record of strong financial performance, resilience, and industry leadership. The bank has consistently rewarded shareholders with a progressive dividend policy, reporting a 14.8% annualized dividend yield. In recognition of its leadership, UBA has received several prestigious awards, including ‘Bank of the Year’ accolades across eight African countries in 2023/2024, and the ‘World’s Best Frontier Markets Bank’ and ‘Best SME Bank in Africa’ awards in 2024.
Rights Issue Details
The rights issue will be available exclusively through the Nigerian Exchange (NGX) e-offer portal, and UBA shareholders can also access their allotment via UBA’s internet banking and mobile banking platforms. In addition to purchasing their provisional allotment, shareholders may apply for additional shares during the offer period.
UBA is one of Africa’s leading financial institutions, serving over 45 million customers across 20 African countries and internationally in New York, London, Paris, and Dubai. With a wide range of banking services, including retail, commercial, and institutional banking, UBA connects people and businesses across Africa and beyond.
The rights issue underscores UBA’s commitment to reinforcing its capital base, expanding its operations, and continuing its growth trajectory across the African continent and global markets.