Nigeria's UBA raises $58 mln from rights issue

Nigeria's United Bank for Africa (UBA) said on Friday it had raised 11.5 billion naira ($57.8 million) by selling new stock to existing shareholders to bolster its capital base.
The bank said the rights issue was fully subscribed. It issued one new share for every 10 already held at 3.50 naira per share, a discount to Thursday's close of 4.25 naira.
Nigerian lenders have been shoring up their balance sheets in preparation for the adoption of stricter international capital requirements, which would otherwise see capital ratios for most of them drop by between 100 and 400 basis points to near the regulatory minimum of 16 percent.
"With this additional equity, UBA has fortified its capital base ahead of the full implementation of Basel II, which requires (a) higher capital buffer for banks," the lender said.
Shares in the bank, which fell 52 percent last year, were down 1.65 percent at 4.13 naira.
Rival lender Fidelity Bank on Monday raised 30 billion naira through an unsecured bond at 16.48 percent, to fund increased lending to small businesses and retail clients.
Skye Bank has said it will raise 50 billion naira via a rights issue by the third quarter to expand its loan book, after it sold 100 billion naira worth of commercial notes in March.
Nigeria's banking sector index, which accounts for around 40 percent of total stock market capitalisation, has lost 0.47 percent so far this year, having shed 22 percent last year due to the heavy burden of tighter regulation which crimped profits.