Nigerian Union bank plans offering - exchange

LAGOS, July 22 (Reuters) - Nigeria's Union Bank UBNP.LG is planning a hybrid public offering to fund its investment plans and the share has been suspended, the stock exchange said on Tuesday.

Nigeria's second largest bank by assets is looking to raise over 300 billion naira ($2.54 billion) in new capital through a public offering and rights issue to existing shareholders, Sola Oni, spokesman for the exchange, said.

The bank's share price was frozen at 42.0 naira on Monday pending the completion of the operation, whose date has not been announced.

Many Nigerian banks have returned to the capital market to raise fresh funds since the completion of a financial sector reform in 2005 that slashed the number of institutions from 89 mainly fragile banks to 24 stronger groups. (Reporting by Oludare Mayowa; Editing by Paul Bolding)