The Group Chairman of United Bank for Africa (UBA) Plc, Tony Elumelu said the bank will invest more in global financial hubs including the United Kingdom (UK), the United States of America (USA), France and the United Arab Emirates (UAE) to deepen its global operations and extend its reach further.
This is expected to improve the bank’s earnings and complement the over 50 per cent earnings currently contributed by African subsidiaries outside Nigeria.
UBA is offering 6.84 billion ordinary shares of 50 kobo each to existing shareholders at N35 per share to raise N239.4 billion. The rights issue scheduled to close on December 24, 2024, is pre-allotted based on one new ordinary share of 50 kobo each to every five ordinary shares held as of November 05, 2024.
“The rights issue’s proceeds would be invested in new digital technologies and drive the bank’s organic expansion and business growth within and outside Nigeria while strengthening its international operations”, stated the bank’s chairman who recently signed an agreement to begin full banking operations in France.
While he stated the primary objective of the ongoing rights issue is to strengthen the bank’s position as a pan-African banking industry leader, it also rewards all stakeholders, especially as the African subsidiaries contribute over 50 per cent of the group’s overall performance.
According to Elumelu, the bank operates in 19 African countries outside Nigeria and will also make additional investments in African operations while exploring new opportunities.
He pointed out that the bank’s expansion plan is driven by its philosophy of developing African businesses, expanding its geographical reach and playing a strategic and pivotal role in transforming the continent’s economy.
He added that while the rights issue would enable the bank to meet the new capital requirements stipulated by the Central Bank of Nigeria (CBN), the net proceeds would help to expand lending to small and medium enterprises (SMEs).
Elumelu also hinted at UBA’s plans to strengthen collaboration and partnership with TELCOs and FinTechs to drive technology-enabled initiatives across Africa that will improve intra-trade, remittances, and payments across Africa.
By doing so, the bank will provide the enabling environment to empower businesses, enhance cross-border transactions, and drive regional economic growth and integration. This will position the bank to become the undisputed leading and dominant financial services institution in Africa supporting regional development, growth and prosperity.
