Ecobank Transnational Incorporation (ETI) has unfolded plans to raise its share capital by $3 billion, about N348 billion, to bolster the Pan-African organisation's operations.

The recapitalisation programme was announced by the group's Chairman, Mande Sidibe, in Accra, Ghana, during the Pan-African organisation's yearly general meeting at the weekend.

At the forum, Sidibe told the cheering shareholders that the group recorded $544 million in its 2007 operations, representing 56 per cent rise over the previous year's performance. Net profit also went up by 61 per cent from $86.4 million in 2006 to $138.9 million in the year under review. The recapitalisation drive, approved by the shareholders at the meeting, would however, be effected through options prescribed by the directors, including the pricing and timing.

The funds, according to Sidibe, would be expended on upgrading of facilities; operational expansion on the continent and beyond; and manpower training and development; among others. Speaking in the same vein yesterday at the trading floor of the Nigerian Stock Exchange, the group's Managing Director, Mr. Arnold Ekpe, confirmed that the bank would soon approach the market to raise fresh capital to finance the expansion of its operations.

He explained that the group currently has 1.34 billion shares outstanding and therefore has potential to absorb more shares. He informed stockbrokers that the group proposed a dividend of two cents per share and a share split which enabled it to give five new shares for every one held to existing shareholders.
He added that the fresh funds would be raised in form of debt and equity, and the group is currently awaiting the approval of the appropriate regulatory authorities.

Ekpe said: "We need to increase our capital base to finance the growth of our institution. Currently, wholesale banking constitutes 72 per cent of the group's business, while retail banking is 28 per cent.
"We want to continue to grow our retail business and we plan to become one of the top three banks in Nigeria. Our guiding principle is to enhance shareholder value and our only strategy is Africa."

When asked by Mr. Victor Ogienwanyi, Managing Director of Partnership Investments, to explain how liquidity will be created through the share split, Ekpe said that it was done to make the share less heavy in the market, and allow investors to have more access to the shares of the bank and make it more affordable.