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Union Bank’s 80 pct right issue proceeds for working capital

The chief executive officer and managing director of Union Bank of Nigeria Plc Mr. Emeka Emuwa has disclosed that 80 percent of proceeds from the ongoing right issue will deployed to enhance the working capital of the bank.

Emuwa who stated this Wednesday on the floor of the Nigerian Stock Exchange, NSE, while addressing the stockbroking community and the financial press on the bank’s facts behind the offer, said 12 percent will be invested in technology, innovation and digitalization. While 8 percent is for customer touch points.

On the working capital, he said the bank will focus on six priority areas which includes, agriculture, manufacturing, solid minerals.

Other areas are services like health, education, construction and real estate, oil and gas.

Responding to questions on what percentage will be deployed into manufacturing and agriculture, he said it depends on the opportunities’ that is available before the bank in the economy.

Details of the offer shows that the issued share size is ₦49.7 billion, number of shares is 12.1 billion ordinary shares of 50 kobo each at ₦4.10 per share on the basis of 5 new ordinary shares for every 7 ordinary shares held as at August 21, 2017. The offer opens on September 20, 2017 and closes October 30, 2017.

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