In its quest to meet the capital requirement set by the Bank of Ghana (BoG), the Agricultural Development Bank is set to raise GH¢383 Million.
The Bank is therefore, seeking to hold an extraordinary general meeting on December 20, to seek shareholders’ approval to raise the required funds.
This was disclosed in a statement issued yesterday by the bank.
As at September this year, ADB’s stated capital was GH¢275 million, which is expected to increase to GH¢425 million if it is able to raise the planned amount.
BoG made some reforms in the banking sector last year, directing banks to raise GH¢400 million minimum capital before December 31st, 2018.
Twenty banks, according to BoG have so far met the requirement, and ADB is one of the remaining banks working round the clock to beat the deadline.
As part of its agenda to meet the requirement, ADB, amongst others, is seeking to authorize its directors to raise a minimum of GH450 million through a renounceable rights issue subject to applicable regulatory approvals.
Also the bank will “authorize the conversion of a subordinated debt of GHS150, 000,000 owed the Bank of Ghana into equity as part of the capital raising process. To authorize Directors, subject to applicable rules, to determine the modalities of the renounceable rights issue.”
ADB would also ratify the appointment of Directors, approve Directors’ remunerations, and ratify the appointment of “Ernst & Young as Auditors”.
Meanwhile, banks that will be unable to meet the capital level, will either lose their license, drop to a Savings and Loans category, or may opt to completely fold up.
Source: The Publisher
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