The move, according to the Bank is in fulfilment of ADB’s recapitalisation of four hundred million cedis required of commercial banks by the Bank of Ghana as at December 2018.
Bank reforms: Ghana’s Agricultural Development Bank gets approval to raise GH¢127 million from the Ghana Amalgamated Trust, here's why
The Agricultural Development Bank (ADB) has disclosed that it has received approval to issue in excess of 39 million ordinary shares to the Ghana Amalgamated Trust (GAT) to raise GH¢127 million in order to help meet its minimum capital requirement.
The company said this in a statement issued following an approval by the Securities and Exchange Commission on January 2, 2020.
This is also subsequent to shareholders’ approval at ADB’s annual general meeting on August 28, 2019.
The Private Placement policy
The private placement is a transaction tool which is used by companies to raise additional capital for their operations.
Unlike Initial Public Offering, IPOs, which are opened to the general public, the private placements are targeted at specific investors who usually invest huge sums of money.
Per practice, this means that GAT will have representation on the board of directors of ADB who will provide the strategic direction of the bank.
According to the Ghana Stock Exchange, trading of ADB shares will not be suspended during the offer period.
Meanwhile, the timetable for the transaction will span from Friday, January 10, 2020, to Tuesday, January 21, 2020.
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