Starr Business has gathered that French Bank, Societe General will resort to the Ghana Stock Exchange (GSE) to raise some funds to meet the new GH¢400 million minimum capital for commercial banks by the Central Bank.
The bank has received confirmation from its parent bank of support to satisfy the minimum capital requirement but wants local shareholders to also have the opportunity increase their shares in the bank.
It is unclear what shape and form the exercise will take at the GSE but some stock brokers say it is likely to take the form of a Right Issuance.
A rights offering (issuance) is an issue of rights to a company’s existing shareholders that entitles them to buy additional shares directly from the company in proportion to their existing holdings, within a fixed time period.
The Bank’s Deputy Managing Director, Francois Marchal confirmed to Starr Business’ Osei Owusu Amankwaah the details of the GSE program will be made known to shareholders at the bank’s Annual General Meeting (AGM) slated for the 28th of March 2018.
“It will be a fully transparent process. As a listed company we will go through the normal capital raising process for a listed company but we have the assurance that whatever be the fate or the success of this capital increase the group will be there to support and help us reach the GH¢400 million [mark],” Mr Marchal said.
He further added that the bank is looking at hitting the Ghana burse from April to June to raise the capital.
He, however, shied away from stating how much the bank is expecting to raise.
The bank is the second listed bank after Access Bank to give public notice of intentions to raise money on the burse.
He spoke at an event to award six cars and other items to winners of the bank’s ‘Aben Woha’ promotion. The promotion, it said has deepened the savings culture of Ghanaians.
Speaking at the prize presentation ceremony at the bank’s Head Office, Head of Retail Network Societe General Ghana, Obed Hoyah, said customers’ needs are their ultimate priority and not the profits accrued.
“Our strategy is to inspire a culture of saving in our customers and urge potential customers to save. We want all our customers to get excited about saving and know that discerning customers will want to join a team that focuses on helping them grow their bank balance,” Mr Hoyah said.
Source: Ghana/Starrfmonline.com/103.5FM/Osei Owusu Amankwaah
