Business News of Saturday, 22 December 2018
Shareholders of the Agricultural Development Bank (ADB) have authorised the board of directors to raise a total of GH?383 million in fresh and existing capital to enable the bank to meet the Bank of Ghana’s (BoG) minimum capital requirement of GH?400 million, which expires in 11 days.
Of the amount, a minimum of GH?233 million is to be raised through a renounceable rights issue.
In its 2017 audited accounts, ADB’s stated capital was reported at a little over GH?275 million.
This means that a successfully raising of the GH?383 million will bring the stated capital of the bank to GHC658.
The Board Chairman of the Bank, Alex Benasko disclosed that Bank of Ghana (BoG) has endorsed the decision by the Agricultural Development Bank (ADB) to convert debt of GHc150 million to equity shares to help meet the minimum capital requirement.
Mr. Benasko confirmed that the BoG raised no objection to the move after shareholders’ approval.
“The most important thing is to get the shareholders’ approval for this move because the Bank of Ghana has given its consent and awaiting the Bank [ADB] to approve through its shareholders.
This will also mean that the current ownership structure of the bank will change after all the necessary documentations are done” he said.
The largest majority shareholder of ADB is the Bank of Ghana through its representative, the Financial Investment Trust with 60.5 per cent.
The Government of Ghana with 32.30 per cent and 7.20 per cent for other shareholders.
Managing Director of ADB, Dr Kofi Mensah speaking to the media said the bank’s vision of being among the Top Tier performing Banks in Ghana, balancing market orientation with a development focus on Agriculture will continue to be their main priority
He also indicated that the Bank will remain committed to growing a strong customer – centric Bank, whiles providing profitable and diversified financial services for a sustained contribution to Agricultural development and wealth creation.
Dr. Kofi Mensah was confident the new development will open opportunity for the bank to finance high projects and also increase its support to the Agricultural sector.
“We will be able to expand more and also increase financial support to the Agricultural sector which has been our main focus,” he noted.
At an extraordinary general meeting (EGM) Thursday, shareholders also approved a resolution to appoint EY as auditors, replacing KPMG, which has been auditing ABD’s accounts.