ADB shareholders empower Board to raise GH¢2b additional capital

Shareholders of the Agricultural Development Bank PLC (ADB) have granted approval to the board for a record capital injection of GH¢2 billion to strengthen operations.

The approval now empowers the bank to raise the additional equity capital of up to GH¢2billion through a renounceable rights issue.

The resolution, including the approval of the appointment of new external auditors for the bank, was also approved at the bank’s Extra-Ordinary General Meeting of Shareholders in Accra.

Daasebre Agyapong said per Section 28 (1) of the bank’ s and Specialized Deposit-Taking Institution Act 2016 (Act 930) the bank was required to maintain the prescribed minimum paid-up capital, including accumulating losses or other adjustments.

The Board Chairman said the current minimum paid-up capital prescribed by the Bank of Ghana was GH¢400 million.

 “The recent adverse economic events which include the DDEP and impairments in the loan book of the bank impacted the minimum paid-up capital of the bank,” Daasebre Agyapong added.

The bank recorded third-quarter growth in net interest income and operating income of GH¢397 million and GH¢621 million respectively.

Daasebre Akuamoah Agyapong II, Board Chairman, said the management and staff of the bank would support the bank to pursue its vision to be the people’s bank, harnessing the transformational power of   agribusiness for wealth creation.

He said growing a strong customer-centric bank, providing profitable and diversified financial services for a sustained contribution to agricultural development would also be at the forefront of the targets that the Board, management and staff of the bank were expected to set for themselves.

ADB PLC is listed on the Ghana Stock Exchange with majority of its shares being owned by the government.

Source: GNA