Zenith Bank completed a capital raise which enabled it to source N350.1 billion from equity investors ahead of a deadline to meet new recapitalisation requirements by the Central Bank of Nigeria (CBN).
Nigeria’s biggest lender after GTCO raised the cash from a mix of public offer and rights issue during which 2.8 billion and 5.2 billion ordinary shares were put up for sale respectively, it said in a statement on Monday.
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The rights issue was 100.2 per cent subscribed, while the public offer was 160.5 per cent subscribed.
In all, 4.4 billion shares were allotted in accordance with the terms of the offer and the central bank’s capital verification exercise, the regulatory filing stated.
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Commercial banks in Nigeria are racing to create new capital buffers to expand their capital base to the new thresholds set by the CBN according to their license categories before a March 2026 cut-off time.
Those with international banking authorisation like Zenith are expected to ramp up minimum capital to at least half a trillion naira.
That will help position them to support President Bola Tinubu’s aspiration for a gross domestic product (GDP) of half a trillion dollars by 2030.
Nigeria’s latest GDP is due later this month from the National Bureau of Statistics after its first economic rebasing in ten years.
“The bank’s share capital would now rise to N614.65bn, which is N114.65bn above the regulatory minimum requirement,” Zenith Bank said.
Top-tier rivals, including Access Bank and Guaranty Trust Bank, have completed their capital raise.
Zenith Bank noted that the exercise attracted both local and foreign investors, and achieved the feat principally by way of digital offer, using technology as the main window for investors to access the market.
The Nigerian Exchange’s e-Offer platform, the bank stated, provided the crucial digital pathway for investors during the exercise.
READ ALSO: Zenith Bank raises over N350bn in combined rights issue and public offer
“Proceeds from the offer hybrid offer will be strategically deployed to solidify the company’s position as the leading financial institution. Additionally, the funds will support expansion into other markets in Africa and Europe, investment in technology, and other group-wide growth initiatives,” it said.
Regulators, including the Securities and Exchange Commission and the CBN, have approved the capital raise, Zenith Bank stated.
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