The capital base of a leading mortgage institution in Nigeria, Abbey Mortgage Bank, has risen to N6 billion after the injection of fresh funds.
Recently, the Central Bank of Nigeria (CBN), the banking sector watchdog in the country, authorized Abbey Mortgage Bank to raise additional capital to increase its capital base.
The financial institution approached the nation’s capital market to source N3.3 billion equity through a rights issue, which was embraced by investors, both new and existing.
This helped to make the banking organization better capitalized and able to deliver more financial services, especially in the real estate industry.
The N6 billion capital base, which the firm described as a milestone, is in line with the strategic plan of the management to strengthen the position of the company to champion the most desired change in the mortgage industry.
With the increased capital base, the bank has surpassed the minimum capital requirement for the mortgage subsector, and it has positioned itself for improved business opportunities.
In addition, this will give the bank the capacity to respond to the dynamic economic realities in the subsector and the financial services sector at large, as well as improve the confidence of its customers and potential business partners.
Commenting on the recent development, the Managing Director of Abbey Mortgage Bank, Mr Madu Hamman, stated that he was pleased that the bank has achieved another milestone, as this demonstrates the confidence the existing shareholders have in the new management. In addition, he also thanked CBN for supporting the bank’s growth effort in the past year.
Furthermore, Abbey Mortgage Bank is set on the path of increased partnership with real estate firms, digital adoption drives through its USSD *5103# as well create more collaborative opportunities in the mortgage sector.
Abbey Mortgage Bank Plc engages in the provision of mortgage services, financial advisory and real estate construction finance.
The bank’s segments include mortgage banking, retail banking and investment solutions. The lender also offers various products, such as term deposits, savings deposits, demand deposits, target savings, rent-to-own, home improvement loans.
Abbey Mortgage Bank trades its shares on the Nigerian Exchange (NGX) Limited. The stocks, at the close of business last Friday, were sold for N1.04 per unit, with the market capitalization at N6.72 billion.
Source : Business Post