ADB gets approval to raise GH₵383m

Shareholders of the Agricultural Development Bank (ADB) have authorised the board of directors to raise a total of GHȻ383 million in fresh and existing capital to enable the bank to meet the Bank of Ghana's (BoG) minimum capital requirement of GHȻ400 million, which expires in 11 days.

Of the amount, a minimum of GHȻ233 million is to be raised through a renounceable rights issue.

The remaining GHȻ150 million is a subordinated debt ADB owes the Bank of Ghana that shareholders authorised the board to convert into equity.

The BoG, through its subsidiary, the Financial Investment Trust Limited, owns 60.5 per cent of ADB.

At an extraordinary general meeting (EGM) Thursday, shareholders also approved a resolution to appoint EY as auditors, replacing KPMG, which has been auditing ABD's accounts.

In its 2017 audited accounts, ADB's stated capital was reported at a little over GHȻ275 million.

This means that a successfully raising of the GHȻ383 million will bring to GHȻ658, the stated capital of the bank, provided some of the existing capital has not been impaired.