The Bank has notified The Exchange that its Board has approved recapitalization plans as follows;
1. The Bank intends to apply for a Regional License under the proposed new licensing regime of the Central Bank of Nigeria (CBN) when the guidelines are released.
2. Internal Recovery efforts are estimated to yield about N10billion between January & may 2010. The Bank is quite close in achieving the set target.
3. The Bank will leverage on recent initiatives of the CBN to:
• Discount some provisioned assets with the Asset Management company (AMCON) where at least N10billion would be recovered
• About N2billion of provisioned loans will be refinanced under the N200billion SME Refinancing Fund established by the CBN and being managed by the Bank of Industry
4. The Bank plans to raise capital through a special placing offer from:
• Selected Strategic Local Investors N15billion
• Identified Foreign Investors N34 billion
The Bank is optimistic that it will recapitalized within the time frame set by the Central Bank of Nigeria.
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