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Shareholders approve $500m fresh capital for Diamond Bank

By BusinessNews Staff on April 26, 2014

Shareholders of Diamond Bank Plc Thursday endorsed the plan by the bank to raise $500 million additional capital in its quest to raise its tier 2 capital by $750 million.

The fund would be raised through a rights issue in the ratio, terms, conditions and dates to be determined by the directors, subject to regulatory approvals.

The bank explained that it had already raised about $250 million out of $750 million.

Speaking at bank’s 23rd Annual General Meeting (AGM) in Lagos, its Group Managing Director/Chief Executive Officer, Dr. Alex Otti said the fund would enhance Diamond Bank’s operations as well as its expansion drive.

He explained: “The capital raising is actually part of the $750 million we wanted to raise earlier. It is not that we are looking for $750 million; we already have close to $250 million.

“So what we are looking for is around $500 million and I don’t think shareholders have anything to worry about because we really took our time and went through the process. I assure you (shareholders) that it is going to make the bank better, rather than dilute your shares.”

The Diamond Bank boss assured shareholders that his team would continue to meet the expectation of stakeholders by providing value-adding solutions through professional and highly motivated people as well as by delivering excellent financial performance in all markets where the financial institution operates.

According to Otti, the target of the bank is to make sure that retail banking contributes over 60 per cent of its assets, liabilities and profit in the medium term.

He bemoaned the high cost of operation in the country as a result of infrastructural deficit.
“Any how you look at it, Diamond Bank remains a leader in retail banking and the only bank close to us is miles away from us. We are opening about 160,000 accounts every month,” Otti added.

[This Day]

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