In a significant move towards further transformation, the NPF Microfinance Bank has obtained its shareholders approval to raise fresh capital to convert into a commercial bank.
The decision was made at the 29th Annual General Meeting, where several crucial resolutions were passed to pave the way for this strategic transition.
One of the key resolutions passed at the meeting was the increase in the bank’s issued share capital. Shareholders voted in favour of increasing the share capital by the number of shares necessary to meet the regulatory requirements for conversion into a Deposit Money Bank (DMBs).
This is a major step toward the bank’s ability to transit to a full-fledged commercial bank. To implement this increase in share capital, the directors of NPF Microfinance Bank were granted authorization to pass relevant resolutions.
These resolutions include determining the number of new ordinary shares to be issued, as well as allocating these shares to subscribing shareholders through public offers, rights issues, or placements.
Consequently, the Memorandum of Association of the bank will be amended to reflect the changes in the share capital resulting from this capital raise and allotment process. Apart from the capital-related resolutions, the shareholders also approved the payment of a dividend.
Meanwhile a dividend of 10 kobo per ordinary share of 50 kobo was recommended in the Directors’ Report for the year ended December 31, 2022.
This will be payable to shareholders whose names appeared in the Register of Members as of the close of business on May 8, 2023. Additionally, during the Annual General Meeting, new directors were appointed to contribute their expertise and guidance to the bank’s transition process. Their appointment reflects the bank’s commitment to strengthening its leadership team with individuals who possess the necessary skills and experience to drive the successful conversion to a commercial bank. Its shares currently closed at N1.93 after rising by 3.13 per cent as at June 30, 2023.