Mutual Benefits Assurance Company has commenced plans to raise an additional N10 billion to boost its capital base.
At an extraordinary general meeting held recently in Lagos, the shareholders resolved that the directors could raise the fund through a combination of bond with options, loans, debt or offer for subscription, private placement, special placement at a price to be determined at the discretion of the directors subject to requisite regulatory approvals.
Chamberlain Oyibo, chairman, Mutual, said the decision to raise funds was informed by the need to have adequate working capital to be able to give good returns to the shareholders on their investment.
Oyibo assured the shareholders that the funds would be put to good use since the company has already identified how it would be judiciously invested.
He said that the company is set to take the leadership position in the nation’s insurance industry through the delivery of excellent services to customers and meeting the expectations of all stakeholders.
Akin Ogunbiyi, managing director, spoke further on why the company would be raising the additional funds, saying it would help the underwriting firm to be an active player in the oil and gas business.
He pointed out that indigenous insurance companies have not been taking advantage of the local content policy in the oil and gas industry, even though a target of 45 per cent and 70 per cent was set for 2006 and 2010 respectively.
