UT Bank of Ghana Boosts Capital to $43 Million on Loans From DEG

UT Bank Ltd. of Ghana increased its capital to 84 million cedis ($43 million), exceeding the minimum capital requirement of 60 million cedis, Chairman Joseph Nsonamoah said.

A $5 million loan from Deutsche Investitions und Entwicklungsgesellschaft mbH, a Cologne-based company that funds investments, “will reinforce the capital position of UT Bank,” Nsonamoah said today in Accra, the capital. The loan will be used to meet rising demand for medium-term funding for small and mid-sized businesses, he said.

Bank of Ghana has directed lenders in West Africa’s second-biggest economy to increase their minimum capital by December 31 or have their licenses downgraded.

UT Bank had previously received $10 million in equity investment from the company also known as DEG on June 19, after shareholders approved the transaction on May 8, Pearl Esua-Mensah, deputy managing director said today. With the latest fund injection, DEG’s stake probably increased to 13 percent from 12 percent, Esua-Mensah said.

UT Bank’s shares were unchanged at the Ghana Stock Exchange at 30 pesewas as of 2:14 p.m. in Accra.

To contact reporter on this story: Moses Dzawu in Accra at +233-302-258-797 or mdzawu@bloomberg.net.

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