ADB receives GH¢127 million GAT support for recapitalization

The Agricultural Development Bank (ADB), has completed a private placement which is the issuance of shares to chosen investors, to attract some GH¢127 million into its operations to help it recapitalize.

A notice sighted by Citi Business News on the deal said that the amount constitutes about eighteen percent of the newly issued share capital.

The arrangement was carried out with the support of the Ghana Amalgamated Trust, GAT, which the government of Ghana constituted to assist some five well-run indigenous banks to meet the new GH¢400 million minimum capital requirement set by the Bank of Ghana.

Per the move, ADB’s issued share capital is expected to increase to an estimated GH¢700 million.

Also, the total number of shares is expected to exceed 300.7 million shares.

ADB further maintains that the amount realized will be mainly be used to fund the bank’s core lending activities to the agriculture sector and support the Ghanaian economy in general.

source citibusinessnews.com