By Nkiruka Nnorom & Bisola Ologunde
NPF Microfinance Bank Plc has revealed plans to raise fresh capital from the capital market to boost its working capital.

The chairman of the bank, Mr. Azubuko Joel Udah, who made the disclosure while sounding the closing gong ceremony on the Nigerian Stock Exchange, NSE, said the fund would be raised via public offering and rights issue to the existing shareholders.

Though he did not specify the amount to be raised, he noted that the additional capital would be used in financing branch network expansion, improve its information technology and would also used to beef up the bank’s working capital.

According to him, the Board and management are currently making wide consultation with all stakeholders to determine the appropriate time for the proposed offerings.

“The Board aims at raising stronger capital base, attracting new investors, raising the national profile and enhancing the leadership position of NPF Microfinance Bank in the microfinance sub-sector and will no doubt grow the bank as a reputable financial institution” Udah said.

He stressed that the bank intends to increase its branch network to 29 in the next one year in order to cover the 36 states of the federation as well as sustain its performance.

“As of now, we have 17 branches all over the country, and you know that the NPF Microfinance Bank Plc is a national microfinance bank. It is not confined to Lagos or Abuja alone; it is supposed to go round. So many states have not been covered, and people are clamouring, both police officers and members of the public, who have seen how the bank has been performing, and they want to be part of it, to become depositors and investors.”

He assured that the bank would sustain the yearly dividend it has been paying to its shareholders, adding that ‘the time will come when they will start getting bonus on shares; depending on the way the bank is operating.’

Also speaking, the Managing Director, Mr. Akin Lawal, expressed confidence at the timeliness of the offer, saying that any time the bank chooses to come to the market would be a right time.

He disclosed that NPF Microfinance Bank was one of the beneficiaries of the N220 billion MSME developmental fund of the Central Bank, noting that the bank has been disbursing the fund to qualified entrepreneurs.