Fidelity Bank seeks GH¢ 18m to expand operations

Fidelity Bank Ghana Limited is seeking to raise a minimum of GH¢18 million through a combined rights issue and private placement to strengthen the Bank’s growth and expansion programme.

The Bank has declared its intention to roll-out the Fidelity Postbank, a venture with Ghana Post, and also upgrade its technology platform.

Fidelity’s Postbank venture anticipates increasing its branch network from the current 15 outlets to 125 nationwide within the next five years.

The purpose is also to support its strategic business development and help meet the new minimum capital requirements of GH¢25 million set by Central Bank so as to position itself to access opportunities in the country’s emerging oil and gas sector.

The private placement, which closes on November 27, 2009, offers 6,000,000 ordinary shares to the Bank’s existing shareholders at GH¢3.00 a share, while all unallocated rights issue shares will be offered at a price of GH¢3.30 per share.

It is expected that a minimum of 1,000,000 ordinary shares will be allocated under the private placement based on indications from existing shareholders who may not take up their rights under the rights issue.

Deputy Minister of Finance and Economic Planning, Mr. Seth Tekpeh who launched the issue in Accra on behalf of the Vice –President, John Dramani Mahama, said government is committed to supporting up-and-coming financial institutions to grow and attain a capacity with a network of branches that will enable them to transact business with the public sector on a large scale.

He recounted the banks social corporate responsibilities demonstrates how corporate bodies in the country can contribute to the development of Ghana.

The Chief Executive of Fidelity’s Bank, Mr. Edward Effah, speaking with B&FT anticipates a high level shareholder turn up from both existing shareholders and prospective investors in the light of the banks’ strong fundamentals, growth prospect and general patronage of its activities.
The Bank is committed to investing in the needs, desires and financial ambitions of its customers, he said.

Commenting on the Bank’s expansion drive, which is underpinned by the Postbank venture, he said: “It is expected to help the Bank achieve significant scale and access to a nationwide client base within a relatively short period.

“Postbank distinguishes Fidelity Bank’s retail strategy from the rest of the industry with a clear channel through which the Bank can upscale the delivery of its products and services to the mass market.”

The bank will also use its first class technology platform to further improve the efficiency of the money transfer business, he emphasised.

Fidelity Bank Ghana Limited was issued with a universal banking licence in June 2006 after operating as a Discount House from 1998

The Bank is owned by Ghanaian and foreign individuals and institutional investors, including the Agricultural Development Bank and Social Security and National Insurance Trust with 12 other shareholders.