Access, Zenith, Other Banks That Moved to Raise Capital in 2024

• Earlier in the year, the CBN gave Nigerian banks across various tiers directives to meet new capital base
• The bank capitalisation plan is seen by analysts as a timely economic growth stimulus for the industry
• Fidelity Bank, Access Holdings, GTCo and other banks have started making moves to increase their capital base

Legit.ng journalist Zainab Iwayemi has 5-year-experience covering the Economy, Technology, and Capital Market.

Since March 29, 2024, when the banking recapitalisation exercise was announced, some banks have raised money by going to the stock market.

Analysts view the bank capitalisation initiative as a timely catalyst for economic growth, noting that capitalisation requires banks to hold sufficient funds as a buffer against financial downturns.

Legit.ng has highlighted the banks that made moves to recapitalise in 2024:

Fidelity Bank

Fidelity Bank surpassed the N127.1 billion target set in its combined offer programme, as the bank concludes the programme.

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In an email to investors, the Managing Director of the Bank, Nneka Onyeali-Ikpe expressed appreciation, noting that the bank had surpassed the target set.

The email read,

“With the conclusion of the Combined Offer, I am delighted to announce that we have met and surpassed the capital-raise target we set for ourselves in the first phase of our capital-raise exercise. It is both gratifying and humbling to note this level of investor confidence in the bank.”

Access Holdings

Access Holdings Plc announced the commencement of its N351 billion capital raising through a rights issue, otherwise known as an offer for subscription.

For the right issue, Access Holdings offered 17.772 billion ordinary shares of 50 kobo each to existing shareholders at N19.75 per share. The offer opened on Monday, July 8, 2024.

GTCo

Guaranty Trust Holding Company Plc (GTCO), recently revealed planned to raise nine billion ordinary shares of 50 kobo at an offer price of N44.50 per ordinary shares via public offer on the Nigerian Exchange Limited (NGX).

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This translated into N400 billion ordinary shares the Group planned to raise from investing public through public offer.

Zenith Bank

With the goal of raising over N290 billion, Zenith Bank Plc proposed a hybrid rights issue and subscription offer.

This action represents a big step toward fulfilling the CBN's new N500 billion minimum capital requirement.

In order to achieve this criterion, Zenith Bank needs roughly N229.225 billion, which includes N255.047 billion for the share premium and N15.698 billion in issued and fully paid share capital.

FCMB

In April, Mr. Ladi Balogun, the group’s CEO, disclosed plans to raise N150 billion between April and September 2024 as part of its recapitalization efforts.

Mr. Balogun, on September 9th, expressed gratitude to the CBN, SEC, and NGX for their contributions to the capital raise, stating that these regulatory bodies played crucial roles in facilitating the process.

Jaiz Bank

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After receiving regulatory clearances from the Securities and Exchange Commission (SEC), the Central Bank of Nigeria (CBN), and the Nigerian Exchange Group (NGX), Jaiz Bank announced that it had successfully listed N10.04 billion from its private placement on the NGX. According to a statement from the bank, this achievement puts it in the minority of banks that have already fulfilled the CBN's updated capital requirements before the June 2026 deadline.

According to the bank, its balance sheet is resilient, diverse, and well-structured, indicating that its financial position is still strong.

First Bank

In an attempt to raise an additional N150 billion, FBN Holdings Plc launched a rights issue, issuing 5.983 billion ordinary shares at 50k each to current shareholders at N25 per share.

A one-for-six ratio—one new ordinary share for every six shares held—was the basis for the offering.

Sterling Bank

Sterling Financial Holdings Company Plc announced the commencement of its N153 billion capital raising through a Rights Issue. This strategic initiative marks a significant milestone in its growth strategy, aimed at fortifying our financial foundation, enhancing capital adequacy, and fueling organic growth within its banking subsidiaries.

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The Company has obtained the approval the Securities and Exchange Commission (‘the Commission’) to execute a Rights Issue of Rights Issue of 7,197,604,531 Ordinary Shares of 50 kobo each at N4.00 per share, On the basis of One (1) new ordinary share for every Four (4) ordinary shares held as of 6th August 2024.

CBN extends recapitalisation deadline for BDC operators

Legit.ng reported that the Central Bank of Nigeria (CBN) has extended the deadline for the recapitalisation of Bureau of De Change (BDC) operators from December 3, 2024, to June 3, 2025.

The president of the Association of Bureaux De Change Operators of Nigeria (ABCON), Aminu Gwadabe, stated this at a virtual emergency meeting by ABCON members.

Gwadabe explained that the apex bank extended the deadline by six months due to operators' low compliance with the recapitalisation requirements.

Source: Legit.ng