The board of Infrastructure Development Bank has approved the recapitalisation of the bank to the tune of N29 billion.
Its Managing Director, Adekunle Oyinloye, disclosed this to journalists after the bank’s board meeting in Lagos last Thursday.
Oyinloye said that the board had agreed to raise new funds both in equity and debt capital to meet the recapitalisation exercise.
He said that the board members had agreed to raise three to four billion naira as equity among themselves, while the rest would be raised from the capital market.
He said that the debt capital would drive the bank’s business more than the direct equity because of the nature of bank’s business.
He said that the board believed that the new level of capitalisation would be adequate enough to address the capital required for its projects based on its five-year capital plan.
The managing director also said that the bank would in future raise municipal bond for community based projects.
“We believe that based on our five-year capital plan, that this will be far more than adequate to address our capital requirement for our projects.
“This is not limited to what we raised on specific bases. We will also be raising what we called municipal bond and will soon be in the capital market for that,” he said.
Oyinloye said that the bank might also be in the market for a transport fund.
“This is to tell you that by the nature of business, there will be focus on each sector of the economy.
He said that the bank might raise as much as the demand required and as much as the market appetite could meet.
Johan Kruger, the Vice Chairman of the bank, said that the bank was handling a Redline Transit Project to aid transportation system in Lagos and its environs.
Kruger said that the bank had since 2009 been meeting with a consortium of banks on the Redline Transit Project in response to the Lagos Metropolitan Area Transport Authority’s request to solve transportation problem in Lagos.
He said that the bank had been able to resolve the issue of right of way for the project.
Kruger said that the board had appointed 14 advisors and had spent $400 million dollars of its own money on the technical works on the project.
He said that the bank had also started to mobilise interested parties from overseas and had entered negotiation with LAMATA on public-private partnership.
