Shareholders of Agricultural Development Bank (ADB) have authorised the board of directors to raise a total of GH₵383 million in fresh and existing capital to enable the bank to meet the Bank of Ghana’s (BoG) minimum capital requirement of GH₵400 million, which expires in eleven days.
Of the amount, a minimum of GH₵233 million is to be raised through a renounceable rights issue.
The remaining GH₵150 million is a subordinated debt adb owes the Bank of Ghana that shareholders authorised the board to convert into equity.
The BoG, through its subsidiary, the Financial Investment Trust Limited, owns 60.5 per cent of adb.
At an extraordinary general meeting (EGM) on Thursday, the shareholders also approved a resolution to appoint EY as auditors, replacing KPMG, which has been auditing adb’s accounts.
In its 2017 audited accounts, adb’s stated capital was reported at a little over GH₵275 million.
This means that a successful raising of the GH₵383 million will bring to GH₵658 million, the stated capital of the bank, provided some of the existing capital has not been impaired.
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