Uganda: Dfcu in Drive to Raise Shs200b to pay off Shareholder Loan

Dfcu Limited, the single shareholder of dfcu Bank, has launched the rights issue where it expects to raise Shs200 billion by selling new shares to settle a shareholder loan.

The rights issue, which opened on Monday September 4, will run for three weeks closing on September 25 with a total of 263,157,895 new shares issued at Shs760 per share on the Uganda Securities Exchange (USE).

The deal offers existing shareholders 0.53 new shares for every one share held by close of business on August 24, 2017.

Speaking to the media during the launch of the rights issue at the USE offices in Nakawa, Mr Paul van Apeldoorn, the dfcu Limited chief transformation officer, said dfcu is going through a growth phase and there is need to bolster its capital base.

“The Rights Issue is therefore in with our objective of raising more capital to support our growth agenda. A total of 263 million shares are on offer to our current customers to take up and we expect to raise Shs200 billion,” he said.

He explained that the Shs200 billion was to settle the shareholder loan facility from Arise BV that dfcu acquired to recapitalise the bank after it acquired the assets and liabilities of Crane Bank which was placed under receivership.

“We decided to raise Shs200 billion to cater for the foreign exchange imbalances that might arise in the settlement of $50m loan from Aise BV,” he said.

Full article at allafrica.com

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