The Securities and Exchange Commission, SEC, has approved the N50 billion rights issue of Union Bank of Nigeria Plc.

The Securities and Exchange Commission, SEC, has approved the N50 billion rights issue of Union Bank of Nigeria Plc.

The stock market regulator said the lender can go ahead to raise the Tier 1 capital, to be opened for subscription in September 2017.

During the offer period, 12.1 billion ordinary shares of 50 kobo each will be available at N4.10 per share, on the basis of five new shares for every seven shares held.

The qualification date for the Rights Issue, which has already been announced by the Nigerian Stock Exchange, is August 21, 2017.

Chief Executive Officer (CEO) of Union Bank, Mr Emeka Emuwa, while commenting on the SEC approval, remarked that, “The approval by SEC brings us to the final stages of this important transaction for Union Bank which is critical to our short to medium term business objectives.

“The capital raised from the rights issue will support our strategy to accelerate business growth and position Union Bank as a leading commercial bank in Nigeria.”

Business Post gathered that Chapel Hill Advisory Partners Limited is the lead issuing house to the financial institution; and FSDH Merchant Bank Limited and Stanbic IBTC Capital Limited are the Joint issuing houses.

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