NIB gets GH¢800m from gov’t

The government has injected GH¢800 million into the National Investment Bank (NIB) to help close the bank’s capital deficit and boost its operations to support the national industrialisation agenda.

The injection of funds, which is in the form of a bond issued to the bank earlier in August this year, is part of efforts to make the bank compliant with the Bank of Ghana’s (BoG’s) requirements on minimum stated capital for banks and also make it more competitive.

The Managing Director (MD) of the NIB, Mr Samuel Sarpong, told the Daily Graphic and the Graphic Business’ specialised programme on banking and finance, Banking & More, yesterday that the amount was in the form of a 10-year bond that the government issued to the bank.

Mr Sarpong was the first MD of a bank to take his turn on the programme, which streams on Facebook and other digital channels of the Graphic Communications Group Ltd (GCGL).

He said the Board of Directors of the NIB was now in the process of converting the bond, which was issued at 19 per cent coupon (interest) rate, into equity for the purposes of capitalisation.