Intercontinental Meets Capital Requirement

CITY & BUSINESS GUIDE can confirm that Intercontinental Bank Ghana Limited has met the Bank of Ghana’s new minimum capital

requirement of GH¢60 million.

But the results of the Private Placement that was started in November 2009 was yet to be disclosed.

The bank, a subsidiary of Intercontinental Bank Nigeria Plc, launched a private placement share offer to raise GH¢28.9 million from selected individuals and institutions in Ghana to shore up its stated capital as required by the Central Bank.

According to sources, the bank has successful raised the said amount with its lead managers, Databank Financial Services Ghana Limited.

The paper has learnt that many individuals and institutions showed interest in the offer because of the rapid growth of the bank since after it was established in 2007.

With the exception of Bank of Baroda and Sahel Sahara (BSIC) Ghana Limited, all the other foreign banks have met the new capital requirement, which would elapsed on December 31, 2009.

The two banks were given up to 2012 to increase their stated capital because they started operations in the country in 2008.

The recapitalization of banks would enable them to play a major role in the country’s oil industry.

The Private Placement, which was by Dutch Auction, offered 15,621,622 to 17,000,000 ordinary shares of no par value at a price, ranging between GH¢1.70 per share to GH¢1.85 per share, with the minimum subscription being 410,000 ordinary shares.

Albert Mmegwa, Chief Executive Officer and Managing Director of the bank said, “The bank is not only a Nigerian bank, but wants to make profits to create a platform for Ghanaians to become part owners.”

“We are represented in every sector of the economy, providing credit to market women.”

He added that his outfit had not changed its plans of listing on the Ghana Stock Exchange (GSE), adding that it would float shares on the capital market in the future.
Meanwhile, the Bank of Ghana (BoG) would publish the list of banks that have met the new capital requirement and their stated capital by the end of this week.