Baobab MFB shareholders fund now N3.9bn

In tandem with the Central Bank's directive to microfinance banks to raise capital to N3.5bn, the board of Baobab Microfinance Bank has raised it's shareholders funds to N3.9bn.

This development was confirmed by the Managing Director/Chief Executive Officer of the bank, Olanrewaju Kazeem who attributed the capital raise to retained earnings instead of funds derived from a rights issue.

Citing profitability reasons, Kazeem said growth achieved by the bank made it go for the retained earnings option. He also added that the bank became completely capitalized last October.

“The Central Bank expects that by April, this year, our shareholders' funds should be N3.5 billion, and a minimum of N5 billion by 2021. I am happy to say that at this point, our shareholders fund is over N3. 9 billion, coming from retained earnings," he said.

The MD disclosed that the bank is willing to support Small and Medium Enterprises while aiming for N6bn shareholders funds by year-end.