Nigeria: IMFB Set to Raise N15 Billion Via Private Placement
Nigeria, June, 16 2008 -
Integrated Microfinance Bank (IMFB) Limited has announced its decision to shore up its capital base to N15 billion (USD 130 mil) within the next three years via a private placement which it intends to undertake in three phases.
Speaking during its first annual general meeting in Lagos, the Managing Director of the bank, Mr. Simon Akinteye disclosed that the decision to shore up its capital base was part of its plans to extend its reach to other parts of the country, taking its services to larger number of Nigerians at the grassroots.
He said, "In line with our plans to extend our reach across the country, we are set to shore up our capital base to N15 billion within the next three years. We hope to do this phases. The first phase will be completed by the end of this month. Already the shareholders have given the company the approval to increase our capital base to N5 billion. We intend to use the funds to open additional branches across the country."
He noted that with the proposed increase in its capital base will help it in reshaping the micro-finance business in the country, delivering improved services and meeting the various needs of its customers.
He disclosed that the increased capital base would not tempt it to venture into commercial banking functions, promising to remain within its jurisdiction of micro-finance services, contributing its own quota to the eradication of poverty in the Nigerian economy.
"We will not be enticed by an enlarged capital base to venture into commercial banking services. In fact, most commercial banks in the country today, are stepping down to offer micro-finance services, probably because of its attractiveness, then why should now leave an area where most bigger banks to rushing to, to the areas there are running away from. We intend to remain in the business and set a new standard in the industry that is worthy of emulation," he said.
Aknteye disclosed that it plans to list the shares on the Nigerian Stock Exchange (NSE) after the conclusion of the private placements.
According to him, the private placements will be undertaken by creating an additional three billion shares which will be traded at N5.00 per share. He further stated that in addition to the private placement, it will be undertaking a rights issue for its existing shareholders.
The company recorded a gross earnings of N534.8 million, profit before tax and extraordinary items of N28.1 million and a profit after tax of N2.68 million
He blamed its high operating expenses which stood at N442.6 million on its aggressive branch expansion drive, growing its branches from one to three as at the end of the 2007 financial year.
According to him, "Given the strength of our operational strategy, vast experience in the micro-finance banking landscape in Nigeria, we would continue to be on the path to un-ending prosperity.
We would continue to leverage and consolidate on the achievement and performance of the first year through consistent pursuit of our growth strategies and business models. We would pursue both organic, by establishing more branches in Lagos and its environs in the coming year and lateral growth through the acquisition of some of the erstwhile community banks in neighboring states of Oyo and Ogun."