Recapitalisation: UBA Opens N157.85bn Rights Issue

United Bank for Africa (UBA) Plc has commenced N157.85 billion rights issue to strengthen its capital base.

The rights issue is part of UBA’s efforts to meet the Central Bank of Nigeria’s (CBN) N500 billion minimum capital requirements for international commercial banks by March 2026.

With this capital raise, UBA is poised to bolster its capital adequacy ratio and fund expansion projects, deepening its footprint across the continent’s financial landscape.

The Bank in a release on the Nigerian Exchange signed by the Group Company secretary/legal counsel, Bili Odum said “UBA’s rights issue of 3.157 billion ordinary shares of 50 kobo each at N50.00 per share opened on Wednesday, July 30, 2025 and is scheduled to close on September 5, 2025.”

It stated that the offer, which has been duly approved by the Securities and Exchange Commission (SEC), is being made to existing shareholders on the basis of one new ordinary share for every 13 ordinary shares held as of the close of business on July 16, 2025.

The release added that “this rights issue represents the second tranche under the Bank’s N400 billion equity shelf programme, which was duly registered with the SEC.

“The Programme is designed to ensure compliance with the new minimum capital requirements stipulated by the Central Bank of Nigeria (CBN), while supporting UBA’s strategic expansion objectives and long-term value creation for shareholders.”

UBA chairman, Tony Elumelu, recently said that the bank would meet the CBN’s N500 billion minimum capital requirement for international commercial banks by the third quarter (Q3) of 2025, ahead of the deadline.

Elumelu acknowledged that the apex bank’s minimum capital requirements aimed to strengthen the financial sector and better position it to support the real economy.

“Banks were given until March 2026 to comply with these new performance requirements, with options including raising additional capital, pursuing mergers and acquisitions, or downgrading their licenses to align with current capital levels,” he added.

He explained that in line with the CBN directive, UBA began its capital raising activities with its first rights issue in November 2024, saying that the rights issue closed in December 2024 with 6.84 billion ordinary shares of 50 kobo each offered to existing shareholders at N35 per share.

He noted that the issue was oversubscribed by N11.6 billion, and the entire amount of N251.0 billion has been verified and approved by the Central Bank of Nigeria (CBN).

He added, “The final capital raise is expected to be completed in Q3 2025, well ahead of the CBN deadline.”

He also highlighted that the proceeds from the rights issue will be used to invest in additional digital technologies and business expansion, strengthening the bank’s seven-and-a-half decades of impressive performance.