Breaking News

Tweet TWEET

UT Bank of Ghana Gains Most in Two Weeks on Recapitalization

UT Bank Ltd. (UTB), a lender in the West African nation, rose the most in two weeks as a $15 million equity injection by the International Finance Corp. was enough to meet a minimum capitalization requirement of the central bank.

The stock rose 1 pesewa, or 3.3 percent, to 31 pesewas as of the close in Accra, the capital, the biggest gain since March 16.

The Bank of Ghana’s policy requires lenders to increase stated capital to a minimum of 60 million cedis ($33.8 million) by the end of the year.

UT Bank’s now stands “slightly above 60 million cedis after it received the money from IFC yesterday,” Randy Mensah, a stock trader at Databank Financial Services Ltd. in Accra, said by phone today. “That was boosting some confidence in the shares on the market.”

The deal will enable the Accra-based bank to boost loans to small-and medium-sized businesses, according to a statement from the bank yesterday.

To contact the editor responsible for this story: Antony Sguazzin at asguazzin@bloomberg.net.

Press spacebar to pause and continue. Press esc to stop.

Bloomberg reserves the right to remove comments but is under no obligation to do so, or to explain individual moderation decisions.

Please enable JavaScript to view the comments powered by Disqus.