Zenith Bank Set To Raise N290bn In New Capital

Zenith Bank Plc has announced plans to raise approximately N290 billion in fresh capital, exceeding the N230 billion required to comply with the Central Bank of Nigeria’s (CBN) new recapitalisation mandate.

The announcement was made during the bank’s rights issue and public offer signing ceremony held on Monday, 29^th July, in Lagos.

The bank detailed that the capital raise will be a combination of a rights issue and a public offer. The rights issue will offer 5,232,748,964 ordinary shares at N36.00 per share, while the public offer will present 2,767,251,036 ordinary shares at N36.50 per share to new investors. Existing shareholders can purchase additional shares based on a ratio of one new ordinary share for every six existing shares held as of July 24, 2024. The public offer is open to new investors.

Dr. Adaora Umeoji, Group Managing Director (MD)/Chief Executive Officer (CEO) of Zenith Bank Plc, expressed satisfaction with the enthusiasm shown by existing shareholders and highlighted the importance of incorporating a public offer to attract new investors.

“This capital raise, slightly above the N230 billion required by CBN, will support our expansion across Africa, investment in technology infrastructure, and ongoing working capital needs,” she said.

Mr. Oladele Sotubo, Chief Executive of Stanbic IBTC Capital Limited, praised Zenith Bank’s management for their dedication to the transaction, which offers a significant opportunity for both existing and new shareholders.

He affirmed that this combined rights issue and public offer positions Zenith Bank as a leader and innovator in the capital market.

The offer, led by Stanbic IBTC Capital Limited with support from several joint issuing houses, will open on August 1, 2024, and close on September 9, 2024.

The CBN’s recapitalisation directive requires commercial banks with international authorisation to increase their capital base to N500 billion, national banks to N200 billion, and regional banks to N50 billion within 24 months starting April 1, 2024.