CalBank Board approves GHC600m renounceable rights issue

The Board of CalBank Ghana PLC has approved a GHS 600 million renounceable rights issue to be sourced through private placement of ordinary and preference shares to new investors.

The issuance comprises 1,872,461,736 ordinary shares of no-par value, priced at GHS 0.29 pesewas per share, and 196,503,781 preference shares of no-par value, also priced at GHS 0.29 per share.

The offer will be in a ratio of one new ordinary share for 0.3351 existing ordinary shares and one new preference share for every 3.1935 existing ordinary shares held by a qualifying shareholder.

The fresh capital injection is to strengthen the Bank’s financial position, support its growth plans and give long-term value to shareholders.

Specifically, it will restore capital buffers to pre-DDEP levels, improve single obligor limit to facilitate larger transaction sizes and maintain a robust capital adequacy ratio over the medium term.

It will also support funding of targeted pipeline transactions in priority economic sectors, target expansion of the bank’s operational footprint at strategic locations across the country and enhance CalBank’s unrivalled technology platforms.

“Our major shareholders have been fully supportive of the capital raise exercise and the Board is poised to restore the Bank’s capital following due regulatory process. Today we invite every shareholder of CalBank to take advantage of the opportunity and exercise their rights. With your continued support and partnership, we are confident in our ability to realize our vision of becoming a superior banking institution”, says Joe Mensah, Board Chair of CalBank PLC.

Over the past 34 years, CalBank has consistently demonstrated robust financial performance, delivering returns to its shareholders despite recent market and economic challenges.

This sterling historical performance is a testament to our steadfast commitment to a clear strategic vision, guided by strong leadership, innovation, and the unwavering dedication of our exceptional team.

As the bank transitions into the next phase of its evolution, it is set to unveil its new five-year strategy aimed at propelling CalBank to even greater heights.

This strategy focuses on cultivating a resilient credit risk management culture, harnessing the full potential of our digital channels, and deepening its retail market operations by diversifying its balance sheet.

The bank has also taken bold steps to strengthen our governance model, put in place structures to support performance management and reduced the complexity of our organizational structure to drive the business efficiently and effectively.