UT meets Bank of Ghana recapitalization requirement
UT Bank Limited has confirmed that it has met Bank of Ghana’s GHS60 million recapitalization requirement. This was contained in a statement released by the bank. This follows a subscription agreement with the International Finance Corporation (IFC) which will see the corporation invest up to 22 million Cedi into the bank. UT now joins the elite group comprising Ghana Commercial bank and Agric Development Bank (ADB).
The Chief Executive Officer of UT Bank in the statement said, ““IFC is the world's largest development institution focused on the private sector, and its investment constitutes a welcome affirmation of the commercial success of the "UT Way," as well as the positive social and developmental impact UT has made in Ghana”. Mr Amoabeng added that IFC’s investment will help spur the development of Ghana's SME and mid-market companies and prepare the Bank for future growth opportunities in the economy”.
IFC, focuses exclusively on the private sector in developing countries. In 2011 it supported some Ghanaian banks including Ecobank Ghana with over $2 million dollars.
Following UT Bank’s track record of supporting SMEs, it is likely that attracted the IFC to support the bank with the GHS22 million. According to the agreement IFC’s investment into UT Bank will be done through a private placement of new common equity shares. IFC will also extend an Advisory Services program to strengthen UT Bank’s risk management and corporate governance practices.