Director of Infrastructure Bank, Mr. Adekunle Oyinloye
By Goddy Egene
The Infrastructure Bank Plc, formerly known as Urban Development Bank, will from next week begin to shop for N1.5 billion from its existing shareholders as part of its recapitalisation process.
Speaking at the completion boarding meeting in Abuja, Managing Director of Infrastructure Bank, Mr. Adekunle Oyinloye, said the funds would be raised through a rights issue of 1,551,500,000 ordinary shares of N1.00 each.
According to him, the rights issue is a compensation for the existing shareholders for their faith in the bank, stressing that the bank was re-positioning itself to bring greater impact to bear on the nation’s infrastructural development sector in the coming years.
Oyinloye noted that Nigeria must redress its infrastructural deficit if its goal of joining the league of the world’s top 20 industrialised nations by year 2020 must be achieved.
Also speaking on the rights issue, Chairman of the bank, Alhaji Lamis Dikko, said the shares were being offered the shareholders on the basis of one new ordinary share for every ordinary share held as at June 30, 2012, while the offer would open between December 17 2012 and January 28, 2013.
He explained that the shareholders of the bank included federal, state governments, local governments and trade unions.
The chairman explained that the proceeds of the right issues would be used to provide additional funding for facilitating project finance, debt payment and also enhancing capital working requirements of the bank.
The Infrastructure Bank Plc was established in 1992 under decree No. 51 of the 1992 constitution of the Federal Republic of Nigeria. The bank is Nigeria's dedicated infrastructure bank providing financial solutions to support key long-term infrastructure projects, including transportation infrastructure, municipal common services, mass housing and district development, solid waste management and water provision, and power and renewable energy projects.