First Atlantic Unfolds Capitalisation Plan
Ibrahim Bolarinwa
First Atlantic Bank Plc has unfolded a three-prong plan to comply with the new N25 billion capital requirement prescribed by the Central Bank of Nigeria (CBN).
The plan involves attracting new foreign investors into the bank, merging with or acquiring banks of similar interests; and encouraging select customers to acquire interest in the bank.
Speaking at the formal opening of its branch in Awka, the Anambra State capital, Tuesday, the Chairman of the Bank, Olorogun O'tega Emerhor, said the prescription of the apex bank would result in consolidation within the sector, thereby producing bigger and internationally competitive banks.
"First Atlantic is in talks with a number of like-minded institutions to exploit their various areas of strength in a business consolidation/merger that will involve both local and international institutions", he said.
Emerhor said that the capitalization requirement would assist First Atlantic achieve its vision of emerging as one of Nigeria's top five banks, adding that it was aiming to surpass the N25 billion benchmark to emerge as "a globally competitive institution."
According to him, the bank had initiated discussions with some foreign investors interested in investing in the bank, adding that the conclusion of these negotiations would represent a major plank of its capitalization plan.
The bank was also in talks with banks with allied interests and persuasion aimed at either acquiring them or entering into merger relationship with them, he said.
According to the chairman, First Atlantic would emerge from this process as a model that customers would proudly associate with, adding that it would give such customers opportunity to be part owners by taking up investment in the bank. These processes, he said, would be completed by June 2005, six months before the deadline set by the apex bank.
He thanked the people and government of Anambra State led by Governor Chris Ngige for warmly receiving First Atlantic in the state, noting that the opening of the Awka branch, which brings to four the bank's outlets in the state was an indication of the bank's commitment to assisting in the development of the state.
Emerhor said that the bank, which is famed for its electronic banking competence also has a culture of developing communities where it does business, adding that the people of Awka would soon feel the impact of the bank in this respect.
In his message, the Anambra State Governor, Dr. Chris Ngige thanked the bank for associating with the developmental aspirations of the people of the state and its strong presence in the area, assuring of his support for the bank and the efforts of the CBN to make the banking sector stronger.
First Atlantic Bank Plc is one of the country's fastest growing banks with 47 business offices. It is also seeking the Central Bank's approval to open additional 10 branches that will take its network to 57 by December 2004.
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