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Business News of Sunday, 22 April 2018

Source: Myjoyonline.com

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.