Unity Bank raises N19.2bn in share sale

Nigeria’s Unity Bank has raised N19.23 billion ($117.4 million) in a share sale to existing shareholders to bolster its capital position as the central bank implements stricter international regulations.

The mid-tier lender sold 38.45 billion shares at 0.50 naira each, the issuing adviser said on Thursday.

The issue was oversubscribed and the bank will refund excess subscription monies to shareholders.

Unity Bank raised the funds to bolster its capital base and finance working capital, the adviser said in a notice.

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.

Rival lender Diamond Bank, which has just concluded a 50.3 billion naira rights issue, issued a $200 million Eurobond in May.

Access Bank has said it will seek shareholders’ support in October to raise 68 billion naira via a rights issue.

Businessday