Shareholders of Diamond Bank Plc Thursday endorsed the plan by the bank to raise $500 million additional capital in its quest to raise its tier 2 capital by $750 million.
The fund would be raised through a rights issue in the ratio, terms, conditions and dates to be determined by the directors, subject to regulatory approvals.
The bank explained that it had already raised about $250 million out of $750 million.
Speaking at bank’s 23rd Annual General Meeting (AGM) in Lagos, its Group Managing Director/Chief Executive Officer, Dr. Alex Otti said the fund would enhance Diamond Bank’s operations as well as its expansion drive.
He explained: “The capital raising is actually part of the $750 million we wanted to raise earlier. It is not that we are looking for $750 million; we already have close to $250 million.
“So what we are looking for is around $500 million and I don’t think shareholders have anything to worry about because we really took our time and went through the process. I assure you (shareholders) that it is going to make the bank better, rather than dilute your shares.”
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