CalBank PLC has raised GH¢1.164 billion through a renounceable rights issue that attracted significantly more investor interest than expected, the bank has announced, following the close of subscriptions on November 21.
The fundraising, which exceeded the bank’s original target of GH¢900 million by nearly 30 percent, drew participation from 1,799 shareholders and has been described by market observers as a strong show of confidence in the bank’s future.
The three-week exercise, which opened on November 3, allowed existing shareholders to purchase new shares at GH¢0.29 each, with one new share available for approximately every three shares already owned.
The bank also conducted a private placement that attracted more than GH¢500 million in additional commitments, though this excess demand could not be accommodated due to the fixed size of the offer.
A renounceable rights issue allows existing shareholders to buy additional shares in proportion to their holdings, with the option to sell their rights to others, while a private placement offers new shares directly to select investors, usually institutions, without extending the offer to all shareholders.
“This is a clear and undeniable endorsement of the trust investors continue to place in CalBank—our vision, our potential and the strategic role we occupy within Ghana’s financial ecosystem,” Board Chairman, Daniel Sackey said in a statement.
The successful fundraising comes as CalBank works to strengthen its financial position following challenges from the Domestic Debt Exchange Programme, which affected many local banks’ holdings of government securities.
Managing Director, Carl Asem said the bank has spent the past two years deliberately restructuring its operations. “CalBank is entering a new era—one defined by resilience, momentum, and disciplined growth. Over the past two years, we have quietly but deliberately restructured our balance sheet, rebuilding it to be stronger, more sustainable, and fully aligned with our long-term aspirations,” he said.
The new capital will be deployed across several strategic priorities, according to the bank. These include restoring capital reserves to meet regulatory requirements, enabling the bank to handle larger transactions, financing projects in key economic sectors, expanding the branch network, and upgrading technology platforms.
The fundraising represents a significant increase from CalBank’s 2024 rights issue, which raised GH¢145.84 million against a minimum target of GH¢120 million. That earlier exercise was part of a shareholder authorisation granted in 2023 to raise up to GH¢600 million.
The 2024 offering involved issuing 1,872,461,736 ordinary shares and 196,503,781 preference shares at GH¢0.29 each. Despite facing a brief legal challenge from a minority shareholder, the exercise proceeded successfully, with preference shares later converted into ordinary shares.
Mr. Asem described the latest capital injection as the “final catalyst” needed to activate the bank’s growth strategy, which focuses on innovation, customer service, and operational excellence. He said CalBank is now positioned to pursue growth “vigorously yet responsibly.”
Mr. Sackey also noted that the board remains committed to “disciplined, high-quality execution” and delivering results that are “strong, consistent, and grounded in sound governance and prudent risk management.”
The oversubscription is being viewed by analysts as validation of CalBank’s strategic direction and an indication of improving investor sentiment toward the banking sector following a period of restructuring linked to domestic debt exposures.
CalBank started the year with a share price of GH¢0.35 and has seen its value rise by 14.3 percent since then.
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