Abbey Building Society to raise N20b fresh Capital
Category: Investors NewsBeat
WEDNESDAY, 01 DECEMBER 2010
PLANS by the Board of Directors of Abbey Building Society Plc (ABBEY) to raise N20billion have been endorsed by Shareholders.
According to the company, the fund when raised will be dedicated to housing and mortgage financing in Nigeria .
A press statement issued yesterday explained that at the recently concluded Extra-ordinary General Meeting (EGM) held in Lagos, the shareholders “unanimously adopted the motion to enable the bank to raise the N20 billion either by way of public offering, placing, rights offering, book building process or other methods including the issuance of shares, convertible or non convertible loans,medium term notes, bonds or other securities”.
The statement added that aside from the mandate to raise N20billion from the capital market, ABBEY also received the blessing of the shareholders to change its financial year-end from October 31 toDecember 31.
It will be recalled that the Central Bank of Nigeria (CBN) directeduniversal banksto observe a uniform accounting year, which commenced last year.
ABBEY’s 2009 audited account reported a profit after tax of N235million, indicating a 24 per cent improvement over N189.5 million earned in 2008 while shareholders fund increased from N5.2billion in 2008 to N5.4 billion in 2009.
Explaining further, the statement said ABBEY’s sterling performance, in the midst of thefinancial services sectorcrisis resulted in an upgrade of it’s rating from Bbb to Bbb+ rating by Agusto & Co in September 2010.
It said “Critical areas that gave ABBEY an edge in its recent ratings include its consistent strong capitalisation, good liquidity and funding profile, strong franchise and brand, experienced management team and a good market position when compared to its peers.
“As a pace setter in the sub-sector in Nigeria , ABBEY was thefirst mortgage bankto submit itself to an independent rating agency, the first to attract a foreign equity investment, amongst several other laudable initiatives.
“It currently has portfolio of investments of about US$18million from institutions like Afrincivest Financial Sector Limited, Tunisia ; Shelter Afrique,Kenya; and FMO, The Netherlands. The investments are in form of direct equity, long-term loan facility and convertible loan.