Diamond Bank commences N50.37bn rights issue

Diamond Bank has concluded plans to raise N50.37bn through a rights issue, the bank said in a statement yesterday.

This is sequel to the nod from shareholders at its Annual General Meeting on April 24.

A total of 8,685,145,863 ordinary shares of 50 kobo each will be offered to its shareholders in the ratio of three new ordinary shares for every five ordinary shares held as of June 13, 2014 at N5.80 per share

The company added, 'Final approvals for the registration and listing of the shares from the Securities and Exchange Commission and the Nigerian Stock Exchange respectively are expected imminently; the rights issue is expected to commence on July 30, 2014 and close on August 26, 2014.'

Stanbic IBTC Capital Limited is the lead issuing house, while FBN Capital Limited is the joint issuing house to the rights issue, according to the lender.

The statement further quoted the Group Managing Director, Diamond Bank, Dr. Alex Otti, as disclosing at the signing ceremony held in Lagos that the net proceeds of the rights issue would be applied towards the development of the bank's Information and Communications Technology infrastructure.

The fund will also be used as working capital support as well as for the expansion and refurbishment of the bank's business locations.

Furthermore, the successful outcome of the rights issue is expected to improve Diamond Bank's tier 1 capital and position it to seize bigger opportunities in the sector, according to the group managing director.

The statement quoted the Head, Stanbic IBTC's Equity Capital Markets, Mrs. Oyinda Akinyemi, as urging the bank's shareholders to seize the opportunity of the rights issue to show their confidence in the bank's potential for future growth.

The Executive Director, FBN Capital, Mr. Taiwo Okeowo, also said the bank had considerable potential for long-term growth.

'The rights circular for the issue, which contains a provisional allotment letter and the application/renunciation form, will be dispatched directly to each shareholder before the rights issue opens,' the statement added.

News Sports Lifestyle Entertainment