Union Bank gets shareholders approval raise N123.8 billion through debt instrument

udomaudoma — Udoma Udo Udoma, chairman, Union Bank plc told shareholders that the bank’s focus for 2014 will be on executing its strategic priorities and developing its growth targets

Shareholders of Union Bank plc at the bank’s 45th Annual General Meeting (AGM) held yesterday in Lagos approved that the board of directors of the bank should take necessary steps to raise medium term funding by the issuance of debt instrument(s), tenured bond(s) and/or Tier II securities or a combination of these financing options up to a maximum of $750 million (about N123.8 billion).

Among other resolutions, the shareholders authorised the bank’s board of directors to take all necessary steps to cancel the 37,161,140 ordinary shares of 50kobo each of its issued and fully paid share, being the shares inadvertently held by the company following the acquisition of Union Merchant Bank Limited in 2005 and subsequently reconstructed and re-allotted pro-rata in 2011.

Though, some shareholders of the bank demanded for dividend payout from the board of directors in the current year.

Udoma Udo Udoma, chairman, Union Bank plc told shareholders that the bank’s focus for 2014 will be on executing its strategic priorities and developing its growth targets for the year while navigating a challenging operating and regulatory environment.

Emeka Emuwa, group managing director, Union Bank plc attributed the non-declaration of dividend in 2013 to the bank’s negative reserve. Emuwa reassured the shareholders of the board and management’s commitment toward future payment of dividend.

Shareholders received the audited group financial statement for the year ended December 31, 2013. The company during the period under review, posted gross earnings of N121.39 billion against N117.21 billion achieved in the comparative period of 2012. Profit before tax stood at N3.77 billion compared with N2.87 billion in 2012. Earnings per share rose to 32kobo from 24kobo in 2012.

Shola Aboderin, President, Ibadan Zone Shareholders Association, urged UBN to implement strategic plans that would leverage returns on investments for retail investors in 2014.

Aboderin said the shareholders had waited long for UBN dividend payment and needed to be compensated adequately.