Nations Trust Bank (NTB) is to undertake a rights issue of 40,105,614 ordinary non-voting convertible shares in the proportion of four shares for every 23 held as on January 12, 2018, subject to approval by the CSE and shareholders, the bank said in a stock exchange filing. The rational to issue non-voting shares with a conversion option, as opposed to another class/type of security is, in its efforts to raise capital to meet regulatory requirements, to augment the anticipated balance sheet growth, NTB said.
Non-voting shares would give the bank the ability to source full subscription from all shareholders for the rights issue despite the restrictions placed by the Central Bank on shareholders carrying voting rights, the bank said.
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