Zenith Bank to Raise N8 Billion
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Monday, May 05, 2008
Zenith Bank launches three funds beginning May 5, from which it hopes to raise eight billion Naira
Zenith Bank PLC is set to raise a minimum of N8 billion from the capital market through an offer for subscription to three mutual funds, which opens next Monday, May 5, 2008
On offer for subscription are 500,000,000 units of the Zenith Equity Fund, 200,000,000 units of the Zenith Income Fund and 100,000,000 units of the Zenith Ethical Fund at N10 per unit. The funds are to be managed by Zenith Capital, the investment banking arm of Zenith Bank PLC.
The funds have distinct features aimed at investors with varying risk preferences and investment considerations and are open ended, meaning there is no limit to the amount that can be invested either during or after the offer.
The Zenith Equity Fund is designed to provide long-term capital appreciation from diversified portfolio in quoted equities and debt instruments. It is targeted at investors who desire aggressive growth and are not averse to high risk.
The Zenith Income Fund, designed for investors seeking average return in secure investments, will invest 70 percent of its fund in assets such as government securities, corporate bonds, and commercial bills while 30 percent will be invested in equities.
On its part, the Zenith Ethical Fund is designed for those who seek long-term capital growth through investment in equities but who have strong ethical considerations.
When it opens, investors would be free to subscribe to units of the fund through Zenith Bank PLC or any other approved agent by the fund manager from time to time after the IPO. Minimum investible amount in the fund during and after the offer is N100, 000.00
The Zenith Funds like all other open-ended funds, are very liquid as investors have direct recourse to the fund manager in order to realise the prevailing value of their investments. The funds, which will enjoy economies of scale, will be diversified across several sectors and securities, therefore ensuring reduced volatility in each portfolio.
In order to monitor their investments in the Zenith Funds, investors will have online access to their statements of accounts through the manager's website. Investors can also purchase and redeem units in any of the funds at any of Zenith Bank's branches nationwide.
Investors in any of the Zenith Funds will benefit immensely from the combined experience of over 120 years of the core team in investment management, which achieved a return in excess of 89 percent in 2007 on its privately managed equities-based portfolio.
Zenith Bank PLC, the fund manager, was established in 1990, listed on the Nigerian Stock Exchange in 2004 at a price of N10.90 per share and has since grown to be one of the largest companies by market capitalisation ($6.5 billion) listed on the Nigerian Stock Exchange.
UBA Opens MoneyGram Red Shop in Opebi
United Bank for Africa, UBA PLC, Africa's global bank has opened another MoneyGram centre in Lagos bringing to five the number of UBA branches solely dedicated to MoneyGram transactions in the country.
Speaking at the opening of the MoneyGram Red Shop in Opebi, Lagos, Emma Okoro, divisional head, Segment Banking of UBA, said the idea of dedicated MoneyGram offices is to enable the bank give focus to the money transfer customers. He explained that this move was predicated on the fact that UBA is MoneyGram's pioneer super-agent and the largest agent bank in the West African sub region. "The concept of the UBA MoneyGram Red Shop is to give the large market of MoneyGram beneficiaries uninterrupted attention. We will soon be creating more stand-alone Red Shops in addition to our over 600 MoneyGram-paying branches nationwide."
Joke Giwa, country director, MoneyGram International, commended UBA for being the largest MoneyGram partner in Nigeria. She proclaimed that UBA had invested significantly in the growth of money transfer business by deploying new MoneyGram applications and increasing the number of branches that provide MoneyGram services to over 600 locations. She also applauded the UBA "Red Shops" which are MoneyGram dedicated business offices for their quality and consistency.
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