FBN Holdings, the parent company of Nigerias oldest bank, flagged off its ?150 billion rights issue on Wednesday. While the Central Bank increased capital requirements for the countrys biggest banks tenfold in March 2024, Nnamdi Okonkwo, FBN Holdings GMD, said the banks capital raise plan commenced in 2023.
We knew the kind of firepower we needed, and we decided to do ?150 billion issue. Subsequently, at our next AGM, we will apply to raise another ?350 billion, Okonkwo said in a presentation on the Nigeria Exchange Limited NGX floor.
The bank will sell 5,982,548,799 shares of 50 kobo each to its shareholders at ?25.00 per share. The rights issue will close on December 12, 2024.
We have ?270 billion and the CBN says, go up to ?500 billion. We are currently doing ?150 billion and at our next AGM, well be asking for shareholders approval to do another ?300 billion when we are done, we will then have ?730 billion in capital. That means well be ?230 billion higher than the regulators stipulated capital, Okonkwo said.
FBN Holdings is the fourth tier-1 banking group to launch a capital raise to meet capital requirements, joining Guaranty Trust Holding Company GTCO, Access Holdings, and Zenith Bank Plc . Five of Nigerias largest banks raised a total of ?1.26 trillion, Bloomberg reported .
