Agricultural Development Bank converts GHC150m debt into shares

The Agricultural Development Bank Limited (adb) has said that it has converted GHC150 million subordinated debt into equity.

Agricultural Development Bank

The debt which is owed to the Bank of Ghana (BoG), was converted as a price of GHC 3.25 per share. This led to the issuance of 46,153,846 new ordinary shares.

This was revealed in a circular.

The circular said the shares were issued in favour of Financial Investment Trust, a wholly-owned subsidiary of the Bank of Ghana.

This brings the total number of ordinary shares in issue to 346,952,253 shares of no-par value.

The new shares will be admitted to the main market of the Ghana Stock Exchange and rank pari passu to existing ordinary shares in adb in all respects.

This transaction was approved by the shareholders of adb at its Extraordinary General Meeting on Thursday (December 20, 2018), and by the Securities and Exchange Commission on Thursday (January 20, 2020).

Serengeti Capital Markets is the Lead Manager and Sponsoring Broker for the transaction.

adb recorded a 435% profit for the 2019 financial year.

According to its unaudited 2019 financial statement, it recorded a profit of GHS35.9 million in 2019 as against GHS5.9 million in 2018.

A few weeks ago, adb successfully raised GHS127 million from a private placement.

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