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Business News of Sunday, 22 April 2018


Fidelity Bank to list on Stock Exchange by 2020

Fidelity Bank Limited plans to list its shares for trading on the country’s bourse by 2020 as it targets a spot among the largest three banks in the West African nation.

Shareholders of the country’s fourth-largest lender on Friday approved a proposal to raise ¢70 million ($16 million) by selling stock to selected investors, Managing Director Jim Baiden said in an interview in Accra, reports Bloomberg.

Fidelity will also transfer ¢20 million of its surplus income to boost its capital buffers, he said.

The Bank of Ghana in September raised the minimum capital level for the country’s lenders to ¢400 million, from ¢120 million, and gave the country’s institutions until the end of the year to meet the goal.

The new rules have spurred a flurry of capital-raising efforts, with Energy Commercial Bank Ltd. seeking to raise about ¢330 million through an initial public offering, Societe Generale Ghana Ltd. planning a ¢170 million-rights issue, and Universal Merchant Bank Ltd. in talks with investors for ¢260 million.