ADB Targets Raising GH¢2bn Additional Capital

Daasebre Agyapong

 

SHAREHOLDERS OF the Agricultural Development Bank PLC (ADB) have granted approval to the board for a record capital injection of GHS2 billion to strengthen operations.

The approval now empowers the bank to raise the additional equity capital of up to GHS2 billion through a renounceable rights issue.

The resolution, including the approval of the appointment of new external auditors for the bank, was also approved at the bank’s Extra-Ordinary General Meeting of shareholders in Accra.

Board Chairman Daasebre Agyapong said per Section 28 (1) of the bank’ s and Specialised Deposit-Taking Institution Act 2016 (Act 930) the bank was required to maintain the prescribed minimum paid-up capital, including accumulating losses or other adjustments.

Daasebre Agyapong said the current minimum paid-up capital prescribed by the Bank of Ghana was GHS400 million.

“The recent adverse economic events which include the DDEP and impairments in the loan book of the bank impacted the minimum paid-up capital of the bank,” Daasebre Agyapong added.

He said growing a strong customer-centric bank, providing profitable and diversified financial services for a sustained contribution to agricultural development would also be at the forefront of the targets that the Board, management and staff of the bank were expected to set for themselves.

ADB PLC is listed on the Ghana Stock Exchange with majority of its shares being owned by the government. – GNA

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