Graphic Business News

First Atlantic Bank sets June deadline • To meet new capital requirement

By: Emmanuel Bruce
Category:
Mr Odun Odunfa
Mr Odun Odunfa

The First Atlantic Bank has set a June deadline to meet the new capital requirement of GH¢400 million which was announced by the Bank of Ghana (BoG) last year.

Speaking to the GRAPHIC BUSINESS on the sidelines of a breakfast meeting in Accra, the Managing Director (MD) of the bank, Mr Odun Odunfa, said the bank was currently on the market raising additional capital from existing shareholders and new investors, all in a bid to meet the new capital requirement ahead of time.

“We have come very far in raising the additional capital and we believe we will meet it by June this year,” he stated.

“We started the journey to increase our capital even before the BoG came up with its directive and we had a plan which we just had to accelerate to meet the requirement,” he added.

He said the plans were a combination of rights issue to existing shareholders and private placement to new investors.

“We have shareholders with deep pockets and they have made commitments to us and we know they will keep like they have in the past. The plan is unfolding well and we have no issues at all,” he noted.

Diversifying shareholding base
The MD also indicated that the bank was diversifying its shareholding base with the coming on board of Advanced Finance & Investment Group (AFIG Funds) and other potential investors.

The bank recently signed an agreement with AFIG Funds for an investment of US$10 million into the bank.

The agreement increased the bank’s stated capital to the region of GH¢200 million, which is still short of the BoG’s requirement.

The bank has, therefore, undertaken a rights issue which is expected to raise about US$30 million from existing shareholders; and it is also in discussions with other potential investors to bring in additional capital.

Mr Odunfa expressed his confidence that all those plans would be successful for the bank to meet or even exceed the new capital requirement.

Breakfast meeting
The breakfast meeting which was held on the theme: ‘Wealth creation through portfolio diversification’, had the Group Chief Executive Officer of Databank, Mr Kojo Addae-Mensah, taking participants through how to diversify their investment portfolios.

He encouraged the participants to diversify their investment portfolios depending on the risk they would be able to bear.

He mentioned government securities, stock market, real estate and mutual funds as some of the investment avenues available.   

“It is very important for an investor to know the objective for a particular investment and must also know one’s risk tolerance level,” he stated. — GB