ADB Moves To Recapitalize Before The End Of 2018

With few weeks to close the year 2018, banks continue to make moves in an attempt to meet the GHC400 Million Minimum Capital directive by the Bank of Ghana.

The latest bank to put its shoulder to the wheel in meeting the financial requirement is the Agric Development Bank (ADB).

The bank has disclosed that it will embark on a renounceable right to issue to raise 383 million cedis to help it meet the minimum capital requirement.

This decision is however subject to shareholders' approval at the bank's Annual General Meeting.

The AGM is scheduled for Thursday, December 20, 2018.

According to ADB, it is also to seek shareholders approval to convert a subordinated debt of GH¢150,000,000 owed the Bank of Ghana into equity as part of the capital raising process.

The recapitalization plan by ADB somewhat nullifies the proposed merger of the bank and the National Investment Bank.

As at September this year, ADB's stated capital was GH¢275,000,000.

If the BoG equity plan is successful, it will push the stated capital up to GH¢425,000,000.

This would have exceeded the 400 million cedis minimum capital.

---CitinewsRoom