Africa’s Global Bank, United Bank for Africa (UBA) Plc, will raise N239.4 billion through a Rights Issue of 6,839,884,274 ordinary shares of 50 kobo each at N35.00 per share.

The Rights Issue, which opened on Friday, November 15, 2024, gives existing shareholders the opportunity to purchase additional shares in proportion to their current holdings and is being offered based on one new ordinary share for every five existing ordinary shares held by shareholders, as of November 05, 2024.

In his letter to the shareholders informing them, the Group Chairman of United Bank for Africa, Tony Elumelu, noted that following the resolution of the Group’s shareholders at the Annual General Meeting held in May 2024, authorising the establishment of the N400 billion Equity Shelf Programme, UBA will embark on a Rights Issue, as the first step in its broader capital raising programme.

“UBA’s Rights Issue aims to raise N239.4 billion, through the issuance of new Ordinary Shares to our shareholders. The primary objective of this Rights Issue is to further strengthen our capacity to take advantage of growth opportunities and sustain our leadership in the banking industry,” Elumelu said.

Explaining the use of proceeds, the Group Chairman noted that, beyond regulatory compliance, the funds will expand the Group’s lending capacity, investment in digital infrastructure, support sustainable business practices and expanding the Group’s African operations.

Elumelu also highlighted how UBA is driving economic growth across Africa. “Our historic partnership with the Africa Continental Free Trade Area (AfCFTA) Secretariat, where UBA pledged up to US$6 billion in financing over the next three years to support eligible SMEs across Africa underscores our commitment to fostering economic development”.

The issuance is in compliance with the revised minimum capital requirements for Nigerian commercial banks announced by the apex banking regulator in Nigeria – the Central Bank of Nigeria (CBN) earlier this year.

UBA has consistently demonstrated growth and resilience, evidenced by the Group’s strong financial performance and recent recognition within the industry. UBA’s progressive dividend policy, which has seen an increase by 14.8% annualised dividend yield has demonstrated the Group’s ability to reward shareholders consistently. In 2023/2024, UBA won “Bank of the Year” Awards in eight of its subsidiaries – Cameroon, Chad, Ghana, Cote d’Ivoire, Mozambique, Republic of Congo; Sierra Leone; Tanzania, as well as the Regional Award for Africa and in 2024 has won World Best Frontier Markets Bank and Best SME Bank Africa.

Application for the provisional allotment of the Rights to the new ordinary Shares will be made exclusively through the NGX e-offer portal during the offer period, while existing shareholders may also apply for additional shares above their provisional allotment as described in the Provisional Allotment Letter. Shareholders who are customers of the Bank are also encouraged to access their Rights through UBA’s internet banking and mobile banking channels.

United Bank for Africa Plc is a leading Pan-African financial institution, offering banking services to more than forty-five million customers, across 1,000 business offices and customer touch points in 20 African countries.

With a unique international presence in New York, London, Paris and Dubai, UBA is connecting people and businesses across Africa and globally, through retail, commercial, corporate and institutional banking, innovative cross-border payments and remittances, trade finance and related banking services.

Ecobank Nigeria, an affiliate of Ecobank Group, has been honored with the Client Excellence Award for outstanding performance in institutional cash management for the previous year by Deutsche Bank AG.

During the award presentation in Lagos, Andreas Voss, Chief Country Representative of Deutsche Bank AG, Corporate Bank, congratulated Ecobank for this recognition.

He emphasised that the award reflects Ecobank’s excellence in payment efficiency and cash management. Voss noted that the bank’s commitment to excellence, open communication, and proactive strategies have led to significant achievements for both institutions.

Voss stated: “Ecobank’s dedication to excellence and collaborative spirit have made them an invaluable partner. It was an absolute pleasure working with Ecobank.

Their processing of Straight Through Processing (STP) transactions is a prime example, as Ecobank achieved an STP rate above 99 percent for foreign currency payments and international settlement services. This success underscores the bank’s high SWIFT payment standards, facilitating rapid beneficiary account credits.”

Segun Anjorin, Acting Head of Corporate Banking at Ecobank Nigeria, acknowledged Deutsche Bank as a valuable partner. He noted that the Client Excellence Award symbolises the strong partnership and collaboration between the two banks.

Anjorin reiterated Ecobank’s commitment to providing exceptional quality in payment efficiency and cash management, highlighting how STP implementation enhances operational efficiency and ensures compliance with global payment standards.

About Ecobank Nigeria

Ecobank Nigeria is an affiliate of Ecobank Group, the leading pan-African banking group. We provide a comprehensive suite of financial services and solutions to our Consumer, Commercial, Corporate, and Investment Banking clients through over 250 branches and 60,000 Xpress Point agencies.

Established in 1985, the Ecobank Group aims to promote financial integration and socio-economic development in Africa.

With a presence in 35 sub-Saharan African countries, as well as in France, the UK, UAE, and China, Ecobank boasts unmatched expertise across the continent. Our pan-African platform offers a seamless gateway for payments, cash management, trade, and investment across Africa and beyond.

FBN Holdings Plc’s N150 billion rights issue has gone live on the Nigerian Exchange Group’s (NGX) digital platform, NGX Invest.

This rights issue, offered on a one-for-six basis to existing shareholders, is accessible through NGX Invest, providing a seamless digital channel for eligible investors to participate.
At the “Facts Behind the Rights Issue” event held at the Exchange, FBN Holdings Group Managing Director, Mr. Nnamdi Okonkwo, emphasised the strategic importance of the rights issue, stating, “we will be leveraging our diversified portfolio of businesses and shared resources to ‘do more with less’, optimising costs, improving efficiency, and boosting revenues. We aim to strategically expand into new geographies via both physical and digital approaches while continuing to explore attractive business adjacencies.”

He also noted FBN Holdings’ enthusiasm in utilising NGX Invest’s capabilities, highlighting that “this digital platform allows us to reach a wider investor base and facilitate seamless participation in our capital raise.”
By utilising NGX Invest, FBN Holdings joins six other Nigerian banks that have recently tapped into this innovative platform to distribute a total of eight public offers and rights issues.

This move aligns with the Central Bank of Nigeria’s (CBN) new capital adequacy requirements, which mandate banks to strengthen their capital bases by 2026.

To date, NGX Invest has facilitated approximately ₦1.26 trillion (about $770 million) in capital raises within the banking sector.
NGX Invest’s track record in facilitating capital raises has attracted praise from stakeholders. Emomotimi Agama, Director General of the Securities and Exchange Commission (SEC), noted that banks using NGX Invest have consistently achieved full subscription levels, often reaching oversubscription.

Similarly, Ladi Balogun, Group Chief Executive Officer of FCMB Group Plc, commended NGX Group for its pivotal role in enabling over 40,000 investors to seamlessly participate in their recent public offering through the NGX Invest platform.
Temi Popoola, Group Managing Director/Chief Executive Officer of NGX Group, highlighted the platform’s significance, saying, “NGX Invest’s secure and well-regulated infrastructure has rapidly emerged as the top choice for issuers seeking to distribute their offerings digitally. We are proud to support financial institutions and other issuers in their capital-raising efforts, empowering them to reach a wider investor base and drive economic growth.”

KEYNOTE ADDRESS BY THE COMMISSIONER FOR INSURANCE, MR OLUSEGUN AYO

OMOSEHIN, AT THE 2ND EDITION OF THE AFRICAN TAKAFUL AND NON-INTEREST

(ISLAMIC) FINANCE CONFERENCE, HELD IN LAGOS ON 12TH NOVEMBER 2024

Protocol

I am honored to represent the Commissioner for Insurance, Mr. Olusegun Ayo Omosehin,

who is unavoidably absent due to a prior engagement. He extends his sincere apologies and warm greetings to all participants at this conference.

It is also my privilege to deliver this keynote address at the 2nd Edition of the African Takaful and Non-Interest (Islamic) Finance Conference, themed: “Islamic Finance and Takaful; Building Resilience in a Volatile World.”

I extend my gratitude to Noor Takaful for organising this significant event.

As we continue to navigate an era marked by economic volatility, environmental challenges, and social upheavals, the need for innovative solutions is paramount.

While conventional financial systems often fall short in addressing the multifaceted risks faced by individuals and communities, Islamic finance offers a unique perspective rooted in ethical principles and social responsibility.

Islamic finance is not merely a set of financial products; it is a comprehensive system promoting fairness, transparency, and risk-sharing. At its core, it encourages investors to consider the social, ethical, and environmental implications of their financial decisions.

This holistic approach is particularly relevant today, where the consequences of financing extend beyond mere profit and loss.

Driven by increasing demand for Shariah-compliant financial services, Islamic finance in Nigeria is growing rapidly. The sector accounts for approximately 2-3% of Nigeria’s total financial market, valued at $3.8 billion.

Sukuk dominates the market at 59.3%, followed by non-interest banks at 39.8%, and Islamic funds and Takaful at 0.9%. The Islamic financial industry comprises four non-interest finance banks, five Takaful companies, 15 micro-finance institutions, and 10 non-bank financial institutions.

Central to Islamic finance is the concept of Takaful, or Islamic insurance. Unlike conventional insurance, which often involves risk transfer and interest, Takaful is a Shariah-compliant form of insurance based on mutual cooperation and shared responsibility. Participants contribute to a common fund, which is used to support those in need, fostering a sense of community and solidarity.

In a world where climate change, health crises, and economic instability threaten our livelihoods, Takaful offers a resilient framework that provides not only financial protection but also a safety net that empowers individuals and communities to recover from adversities.

By promoting risk-sharing and collective responsibility, Takaful helps mitigate the impact of unforeseen events, enabling families and businesses to bounce back more effectively.

The principles of Islamic finance and Takaful are especially pertinent in enhancing resilience

through risk mitigation, social justice and sustainable development. Permit me to briefly re-emphasise the three key ways they contribute:

Risk Mitigation: Islamic finance encourages diversification and ethical investment, reducing

exposure to high-risk ventures. Takaful, specifically, spreads risks among participants, making it easier for individuals to access necessary financial support during crises.

Social Justice: The emphasis on fairness and equity in Islamic finance ensures that even the

most vulnerable members of society are protected. Takaful promotes inclusivity, allowing individuals from various socioeconomic backgrounds to participate in risk-sharing, thereby fostering social cohesion.

Sustainable Development: Islamic finance aligns closely with the principles of Sustainable Development Goals. By prioritising investment in ethical and socially responsible enterprises, it contributes to economic stability while addressing environmental and social challenges.

The National Insurance Commission has been instrumental in promoting the growth of the

Takaful industry in Nigeria through several initiatives. Since issuing the Takaful Operational

Guidelines in 2013, the Commission has licensed five Takaful operators, with the concept

gradually gaining acceptance.

Although Takaful currently represents 1-2% of the insurance market, the future outlook is promising, considering the average annual growth rate of over 34% in contribution generation recorded by the industry in the last four years.

The Commission has undertaken several initiatives to support the Takaful industry. The initiatives include the application of risk-based capital system which affords takaful operators a more relaxed minimum capital requirements, the proportionate qualification requirements, which facilitate new entrants into the Takaful market in Nigeria, and most importantly, the Market Conduct and Enterprise Risk Management Guidelines for Takaful and Retakaful operators which were issued to ensure best practices and effective risk management.

Furthermore, several stakeholder engagements and sensitisation workshops have been conducted to raise awareness and educate the public about Takaful and its benefits.

We have and continue to collaborate with international standard setting organisations like the Islamic Financial Services Board, and Accounting & Auditing Organisation for Islamic Financial Institutions to provide requisite regulatory guidelines, technical training and support for the industry, among other initiatives.

Additionally, the Commission is working with other regulators in Nigeria to develop more Shariah-compliant investment opportunities for Takaful and other non-interest financial institutions in the economy.

As we face global challenges such as pandemics, environmental hazards, and geo-political uncertainties, the resilience offered by Islamic finance and Takaful becomes increasingly vital.

The recent pandemic has highlighted the fragility of our existing systems and has shown that sole reliance on conventional models may not suffice in times of crisis. The Islamic financial sector has the potential to innovate, adapt and create products that cater to emerging needs.

In conclusion, as we look to the future, let us leverage on the principles of Islamic finance and Takaful to build a more resilient world. Together, we can create a financial system that not only withstands volatility but also promotes prosperity for all.

Let us support policies that will foster partnerships that drive innovation, and educate our communities on the benefits and growth of Takaful and Islamic finance.

I wish you fruitful deliberations and action points that will enthrone a very resilient Islamic

finance and Takaful sector in Nigeria.

Thank you.

• Owanari Duke Retires from Group Board

Africa’s Global Bank, United Bank for Africa (UBA) Plc has announced the appointment of Henrietta Ugboh as an Independent Non-Executive Director.

The appointment has been approved by the relevant regulatory bodies, including the Central Bank of Nigeria (CBN).

UBA’s Group Chairman, Tony Elumelu, CFR, commenting on the appointment, said:

“Henrietta Ugboh brings a track record of professional success, integrity and leadership, which will further strengthen the UBA Group Board, underlining once again the Group’s commitment to robust corporate governance.”

Ugboh holds a degree in Economics and Statistics from the University of Benin, an MBA from ESUT Business School, and is an alumnus of the Harvard Business School’s Executive Management Program. She has over 30 years’ experience in banking with Citibank and is an Honorary Senior Member of the Chartered Institute of Bankers of Nigeria (CIBN) and a Fellow of the Institute of Credit Administration (FICA).

Elumelu added that with her considerable experience and expertise, which includes commercial banking, credit and risk management, the UBA Board is delighted to welcome Mrs. Ugboh to the Group Board.

“We look forward to her invaluable contribution to the Group as we continue to execute our unique growth strategy across Africa and globally.”

The Board also announced the retirement of Mrs. Owanari Duke, an Independent Non-Executive Director, who joined the UBA Group Board in October 2012.

During her tenure, Mrs. Duke provided distinguished leadership, serving on Committees of the Bank including the Board Governance Committee, Board Audit, Governance, Nomination & Remuneration Committee, Board Credit Committee, Finance & General Purpose Committee and Statutory Audit Committee.

On behalf of the Board, Elumelu expressed UBA’s deep appreciation to Mrs. Duke for her dedication and significant contributions to the Group, wishing her the best in her future endeavour.

About UBA

United Bank for Africa Plc is a leading Pan-African financial institution, offering banking services to more than forty-five million customers, across 1,000 business offices and customer touch points in 20 African countries.

With presence in New York, London, Paris and Dubai, UBA is connecting people and businesses across Africa through retail, commercial and corporate banking, innovative cross-border payments and remittances, trade finance and related banking services.

RMB Nigeria Issuance SPV Plc, a funding vehicle incorporated to support RMB Nigeria in raising financing from the public debt capital markets, achieved a significant milestone with the successful registration of its ₦40 billion Multi-Instrument Issuance Programme.

Stanbic IBTC Capital Limited acted as Lead Issuing House while RMB Nigeria acted as Joint Issuing House on the Programme.

The establishment of the Programme will support the asset growth and liability management objectives of RMB Nigeria by enabling the issuance of debt instruments and structured notes.

Speaking on the Programme registration, Bayo Ajayi, Chief Executive Officer, RMB Nigeria commented: “This Programme provides us the opportunity to access liquidity from the Nigerian debt capital markets to support our strategic and financing objectives. We remain committed to effectively partnering with our clients, and with this enhanced capacity to raise long term funding, we are in a stronger position to support our clients with their long-term loan needs. We believe in the Nigeria growth story and the establishment of this Programme presents a unique opportunity for investors to join us on this journey by participating in the issuances. We are also thankful for the support of Stanbic IBTC Capital and all our advisers who partnered us through this process.”

Also speaking on the Programme registration, Oyinda Akinyemi, Executive Director, Stanbic IBTC Capital, said: “This initiative by RMB Nigeria is yet another noteworthy example set by the Bank in relation to global best practice in treasury management and innovation, to cope with evolving market conditions. Stanbic IBTC Capital has been at the forefront of advising our clients on staying ahead of changing market trends, and we are pleased on this occasion to have been of assistance in shaping RMB’s funding strategy. We thank RMB Nigeria for trusting Stanbic IBTC Capital and the other professional parties in seeing the Programme registration to a successful completion.”