Business News of Thursday, 5 April 2012
The International Financial Corporation (IFC) now controls 22 percent shares in UT Bank following a $15 million investment into the bank last week.
The investment catapulted UT Bank to meet Bank of Ghana’s 60 million cedi recapitalisation requirement.
The IFC on Tuesday, made an additional capital injection of $15 million bringing its total investment in UT Bank to $30 million.
According to the Chief Executive Officer of the Bank, Mr. Prince Kofi Amoabeng, IFC’s 22 percent stake in UT Bank is a positive development.
“This is good for us because IFC has got worldwide expertise and we need a member on board to share that expertise with us. And other bit is the technical advice that they can offer UT,” Mr. Amoabeng said.
“The additional $15 million investment will among other things help increase access to medium term capital for Small to Medium Enterprises and also provide the bank access to a global network of banks that will help UT Bank finance cross-border trade transactions of local companies.”
IFC’s Vice President in charge of Latin America and the Caribbean, Sub-Saharan Africa, and Western Europe, Therry Tanoh said his outfit is committed to partnering UT Bank for the long haul.
“Ultimately, we want institutions like UT to grow so that at some point, they can do without institutions like IFC in accessing long term resources,” he said.
He was speaking to journalists when the two parties signed documents covering the additional $15 million investment.
The additional capital includes US$5 million Senior Loan while US$10 million is a Trade Finance Guarantee Facility to UT Bank, Ghana’s leading SME bank.
The Senior Loan and Trade Finance Facility are in addition to an IFC Advisory Services Program and a combined US$15 million equity investment in UT Bank agreed to by IFC and the Africa Capitalization Fund Ltd (AFC), which is managed by the IFC Asset Management Company.