Ghana: CalBank’s Board approves GHC600m rights issue

The Board of CalBank Ghana PLC has greenlit a GHS 600 million renounceable rights issue, to be secured through a private placement of ordinary and preference shares targeted towards new investors.

This issuance encompasses 1,872,461,736 ordinary shares with no-par value, priced at GHS 0.29 pesewas per share, along with 196,503,781 preference shares of no-par value, also priced at GHS 0.29 per share.

The offering will follow a ratio of one new ordinary share for every 0.3351 existing ordinary shares and one new preference share for every 3.1935 existing ordinary shares held by eligible shareholders.

The injection of fresh capital aims to fortify the Bank’s financial standing, bolster its expansion strategies, and ultimately enhance long-term value for shareholders.

The primary objectives of this initiative are to reinstate capital buffers to levels equivalent to those before the Debt Deduction Exercise Programme (DDEP), enhance single obligor limits to accommodate larger transaction volumes, and sustain a resilient 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.

Throughout the last 34 years, CalBank has continually showcased resilient financial performance, consistently generating returns for its shareholders even amidst recent market and economic adversities.

This remarkable track record stands as concrete evidence of our unwavering dedication to a well-defined strategic vision, underpinned by effective leadership, innovative approaches, and the remarkable commitment 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.