The Infrastructure Bank Plc, formerly known as the Urban Development Bank of Nigeria, is offering N1.5 billion right issues to its existing shareholders.
The offer will open from December 17, 2012 and end January 28, 2013..
The bank held the completion board meeting for the offer at its headquarters in Abuja, on Wednesday.
The Chairman of the Bank, Alhaji Lamis Dikko, said that the right issue comprised 1,551,500,000 ordinary shares of N1.00 each.
Lamis said that the additional shares were being offered the shareholders on the basis of one new ordinary share for every ordinary share held as at June 30, 2012.
The Infrastructure Bank Plc was established in 1992 under decree No. 51 of the 1992 constitution of the Federal Republic of Nigeria.
It is Nigeria’s dedicated infrastructure bank providing financial solutions to support key long term infrastructure projects, including transportation infrastructure, municipal common services, mass housing and district development, solid waste management and water provision, and power and renewable energy projects.
The Infrastructure Bank Plc has a unique ownership structure. It is majority owned by the private sector but also has the Federal Government, State Governments and Local Governments as well as the Nigeria Labour Congress as shareholders.
The Bank is thus a government sponsored but private sector led development finance institution.
The current authorised share capital of the Bank is N3.1 billion comprising of 3,103,000,000 ordinary shares of N1.00 each.
The proceeds of the right issues will be used to provide additional funding for facilitating project finance, debt payment and also enhancing capital working requirements of the Bank.
Also present at the meeting were representatives of the lead and joint issuing houses – APT Securities and Funds Ltd and WSTC Financial Services Ltd – and the Security and Exchange Commission (SEC).
In a brief remark after the meeting, the managing director Adekunle Oyinloye said that the bank was re-positioning itself to bring greater impact to bear on the nation’s infrastructural development sector in the coming year.
The Managing Director said that the right issue is the first step of its re-capitalisation process, adding that the rights issue was a compensation for the existing shareholders for their faith in the capacity and future of the bank.
Oyinloye said that the nation must redress its infrastructural deficit if its goal of joining the league of the world’s top 20 industrialized nations by year 2020 must be achieved.