Societe Generale Ghana completes rights issue, increases stated capital

BY: Kweku Zurek
Societe Generale Ghana completes rights issue, increases stated capital
Societe Generale Ghana completes rights issue, increases stated capital

Societe Generale Ghana has met the minimum capital requirement of GHS400 million after it increased its stated capital via a bonus issue and rights issue.

According to a press statement issued by the bank, it has increased its stated capital to GHS404,245,426.72 via a bonus issue of GHS 97,000,000.00 and a rights issue of GHS168,942,501.90, thus meeting the Bank of Ghana’s Directive issued in September 2017.

The Central Bank of Ghana in accordance with Section 28 (1) of the Banks & Specialised Deposit Taking Institutions Act 2016 Act 930 announced for the information of Banks and the general public that it had revised upward the minimum paid up capital for existing banks and new entrants from GHS120 Million to a new level of GHS400 Million under several conditions to be met by December 2018.

Watch a video about the bonus issue and rights issue below;

"Work on recapitalization commenced in 2017 when the Bank’s Board of Directors, Management and Shareholders together with the Sponsoring Broker, Financial and Legal Experts worked assiduously to comply with Bank of Ghana’s Directive in record time," the statement said.

"The Board of Directors obtained Shareholders authorisation at the 38th Annual General Meeting of the bank on 28th March 2018. The increase was through a bonus issue by the transfer from Income Surplus to Stated Capital of GHS97 million backed by a bonus share of 6 to 1 and a Renounceable Rights Issue to raise up to GHS170 million.

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"This effort has strengthened the capital base of SG Ghana to enable the Bank engage in higher volumes of financial transactions. The new capitalisation will make it possible for SG Ghana to position itself to take advantage of the huge opportunities in the Ghanaian industry. It will also enhance the Bank’s competitive edge and enable it deal with new challenges".

The statement said the Bank of Ghana, the Securities and Exchange Commission and the Ghana Stock Exchanged approved the bonus issue and the rights issue.

"Societe Generale Group is confident in Ghana and the operations of SG Ghana. The Bank is diligently working hard to support its customers as championed by its new brand signature; The Future is You".