Source: This Day Live
United Bank for Africa (UBA) Plc has announced that it will channel the net proceeds from its ongoing N239.4 billion rights issue into expanding its digital technology capabilities and pursuing business growth initiatives to reinforce its 75-year legacy of exceptional performance.
UBA is offering 6.84 billion ordinary shares of 50 kobo each to its existing shareholders at N35 per share. The rights issue is pre-allocated on the basis of one new ordinary share for every five ordinary shares held as of November 5, 2024. The subscription period for the rights issue will close on December 24, 2024.
Group Chairman of UBA Plc, Mr. Tony Elumelu, stated that the primary aim of the rights issue is to fortify UBA’s position as a leader in the pan-African banking industry while delivering significant value to all stakeholders.
Elumelu emphasized that the rights issue ensures shareholders retain undiluted benefits from a stronger, more innovative, and resilient pan-African banking institution. The proceeds will support the bank’s plans for organic growth and expansion both within Nigeria and in its international operations. Notably, UBA recently signed an agreement to commence full banking operations in France.
With a presence in major global financial centers, including the United Kingdom, the United States, France, and the United Arab Emirates, UBA intends to deepen its international operations and extend its global footprint. Elumelu noted that the bank’s African subsidiaries currently account for over 50% of the group’s overall performance, underscoring plans to further invest in its existing African operations while exploring new opportunities across the continent. UBA currently operates in 19 African countries outside Nigeria.
He added that UBA’s expansion strategy aligns with its philosophy of fostering African businesses, ensuring the bank not only expands geographically but also plays a critical role in the economic transformation of Africa.
Elumelu highlighted that the rights issue would enable the bank to meet the Central Bank of Nigeria’s (CBN) new capital requirements and strengthen its capacity to extend loans to small and medium-sized enterprises (SMEs).
Furthermore, the bank plans to invest significantly in advanced technologies to enhance its reputation as a cutting-edge financial services provider and improve the customer experience. According to Elumelu, these investments in information and communication technology (ICT) will bolster the bank’s digitization efforts, operational efficiency, and collaboration across its various entities, ensuring seamless service delivery and greater customer satisfaction.
He noted that UBA aims to enhance partnerships with telecommunications companies (TELCOs) and financial technology firms (FinTechs) to advance technology-driven initiatives across Africa. These initiatives will enhance intra-African trade, remittances, and payment systems, thereby fostering cross-border transactions and driving regional economic growth.
By implementing these strategies, Elumelu stated, UBA will create an enabling environment for businesses, strengthen regional economic integration, and position itself as the leading financial services institution in Africa, driving development, growth, and prosperity across the continent.
