Diamond Bank Plc is to raise $750 million additional capital to enhance its working capital and finance its business development initiatives, according to a notice to its shareholders that was signed by Nkechi Nwosu, company secretary
However, the move is subject to approval from regulatory authorities and its shareholders at its Annual General Meeting which holds on April 30.
It said: "That subject to the approval of the regulatory authorities, the Directors be and are hereby authorised to raise additional capital of up to $750 million or its naira equivalent through the issuance of any form of debt and/or equity and/or any other instrument which may be appropriate to meet the bank's capital requirements to be undertaken by way of a rights issue or an offer for subscription with or without preferential allotment, either locally or internationally."
Diamond Bank is expected to release its full year 2012 results this week.
The commercial bank recently disclosed that it has been granted approval by the Financial Services Authority (FSA) to operate a bank in the United Kingdom.
Dr. Alex Otti, group managing director/ chief executive officer, Diamond Bank, had said that the international subsidiary would offer the financial institution opportunity to offer wholesale financial services, including facilitating international trade to new and existing clients.
"This approval also provides a unique opportunity for Diamond Bank to establish its presence in London, which is a hub for finance and banking activities in Europe," Otti had explained.
