Bank of Africa Increases the Share Capital from 22 to 44 Billion FCFA

The shareholders of Bank of Africa (BOA) met in an Extraordinary General Meeting on August 13th, 2024. The meeting made it possible to decide on three points, one of the most important of which was the increase in the bank’s share capital. This increased from 22 to 44 billion, making Bank of Africa the bank with the largest capital in Burkina Faso.

The work of the Extraordinary General Meeting of August 13th, 2024, was led by the Chairman of the Board of Directors, Lassiné Diawara. They brought together 85% of the shareholders, and made it possible to decide and adopt three points relating to the increase in the bank’s share capital, the amendment of the statutes with regard to articles 6 and 7 as well as the provision for formalities.

Th Bank of Africa meeting to decide on the bank’s share capital

Regarding the first point related to the increase in share capital, the shareholders unanimously decided to increase it from 22 to 44 billion FCFA. The capital increase will therefore be done by incorporating the premiums linked to the capital and part of the optional reserves, without cash contribution. In practical terms, 22 million new shares with a nominal value of 1,000 FCFA each will be issued, which will be allocated free of charge to shareholders, at the rate of one new share for one old share.

The increase in the bank’s capital, indirectly leads to the amendment of articles 6 and 7 of the bank’s statutes. The revised article 6 stipulates that the share capital is set at the sum of 44 billion FCFA, fully paid up. Article 7, for its part, provides that the share capital is divided into 44 million shares with a nominal value of 1,000 FCFA each. The Extraordinary General Meeting also granted the Director General and Deputy Directors General the powers to pass and sign all acts, complete all formalities and do everything necessary to integrate the statutory amendments.

For Christian Zongo, Deputy Director General in charge of operations at Bank of Africa, the increase in share capital reflects a certain solidity of the bank. With the former share capital of 22 billion, Bank of Africa was already beyond the standard required by the BCEAO, which is 20 billion. “When we increase the capital in this way, we strengthen our capacity to support the economy. BOA is a significant player in the country’s financial sector. We are going to substantially increase our financing capacity for vital sectors of the economy,” he suggested.

This increase in share capital also pleases Bank of Africa shareholders. Loloma-Hie Annonciata Kaboré, shareholder, expressed her satisfaction with this decision, which allows doubling the shareholders’ shares and dividends as well.

__

(Featured image by Scott Graham via Unsplash)

DISCLAIMER: This article was written by a third party contributor and does not reflect the opinion of Born2Invest, its management, staff or its associates. Please review our disclaimer for more information.

This article may include forward-looking statements. These forward-looking statements generally are identified by the words “believe,” “project,” “estimate,” “become,” “plan,” “will,” and similar expressions. These forward-looking statements involve known and unknown risks as well as uncertainties, including those discussed in the following cautionary statements and elsewhere in this article and on this site. Although the Company may believe that its expectations are based on reasonable assumptions, the actual results that the Company may achieve may differ materially from any forward-looking statements, which reflect the opinions of the management of the Company only as of the date hereof. Additionally, please make sure to read these important disclosures.

First published in le faso.net. A third-party contributor translated and adapted the article from the original. In case of discrepancy, the original will prevail.

Although we made reasonable efforts to provide accurate translations, some parts may be incorrect. Born2Invest assumes no responsibility for errors, omissions or ambiguities in the translations provided on this website. Any person or entity relying on translated content does so at their own risk. Born2Invest is not responsible for losses caused by such reliance on the accuracy or reliability of translated information. If you wish to report an error or inaccuracy in the translation, we encourage you to contact us