United Bank for Africa (UBA) Plc will achieve the N500 billion recapitalisation through the combination of rights issues, private placement and public offer ahead of the 31st March 2026 deadline set by the Central Bank of Nigeria (CBN).

The banking sector regulator raised the minimum capital base for banks with international authorisation to N500 billion and also set the new minimum capital base for commercial banks holding national authorisation at N200 billion, and N50 billion for those with regional authorisation.

According to InsideBusiness report, Merchant banks now have a minimum capital requirement of N50 billion, while non-interest banks holding national and regional authorisations must adhere to new minimum requirements of N20 billion and N10 billion, respectively.

The Chairman, Tony Elumelu at the 62nd Annual General Meeting (AGM) of the frontline financial institution, over the weekend, however, assured that the recapitalisation would be achieved without the public offer.

Elumelu, highlighting the bank’s robust performance and the strategic initiatives to ensure compliance with the CBN directive, said UBA is well-positioned to achieve the target due to strong support from existing shareholders and the bank’s extensive customer base.

He mentioned that UBA currently operates in 19 African countries, in Dubai, London, Paris, and New York, providing ample opportunities for raising the required capital.

According to him, the board has approved a strategy that includes a rights issue, a private placement, and a public offer to allow customers and partners across Africa to invest in UBA.

“Recapitalization is something that UBA will accomplish before the stipulated time frame. The reason is that we have shareholders who want to reinvest in the bank, we have customers who aspire to be shareholders of the bank and remember that UBA operates, not just in Nigeria but 19 other African countries.

Source: InsideBusiness