The tier-1 banks in the country, FBN Holdings, Access Holdings, Guaranty Trust Holding Company Plc, and United Bank for Africa Plc have indicated plans to raise about over $3.03bn (N3.46tn) in fresh capital.
This came barely one month after the Central Bank of Nigeria directed Deposit Money Banks to recapitalise.
According to findings on Sunday, the four tier-1 banks announced plans to raise funds from both the international capital market and the local market.
At least two of the financial institutions, FBN Holdings and GTCO announced their plans to raise fresh capital last week, while Access Holdings said it would raise capital in both naira and US dollars.
FBN Holdings in a notice of its Extraordinary General Meeting filed with the Nigerian Exchange Limited disclosed that it would be seeking shareholders’ approval to raise N300bn additional capital.
According to the notice, shareholders will consider and vote on the special business “that the company be and is hereby authorised to undertake a capital raise of up to N300,000,000,000.00 (three hundred billion naira)”
The financial institution is seeking to raise the funds via a public offering, private placement, or rights issue in the Nigerian or international capital markets.
Similarly, GTCO revealed that it would be seeking shareholders’ approval to raise $750m.
In a notice on the capital raising, GTCO said the fund would be raised “through the issuance of securities comprising ordinary shares, preference shares, convertible and/or non-convertible notes, bonds or any other instruments, in the Nigerian and/or international capital markets, either as a standalone issue(s) or by the establishment of capital raising programme(s), whether by way of public offerings, private placements, rights issues and/or other transaction modes, at price(s), coupon or interest rates determined through book building or any other acceptable valuation method or combination of methods, in such tranches, series or proportions, within such maturity periods and at such dates and upon such terms and conditions as may be determined by the board of directors of the Company (the Board), subject to obtaining the requisite approvals of the relevant regulatory authorities.”
Access Holdings is also seeking to launch a capital raising programme to raise funds in two currencies, the Nigerian naira and the US dollar.
Additionally, the United Bank for Africa also revealed plans to raise fresh capital to meet the new regulatory benchmark.
In a statement issued late Sunday, the banking group said it is actively exploring a well-defined strategy to boost its capital base and ensure compliance within the regulatory time frame.
UBA’s Group Managing Director/Chief Executive Officer, Oliver Alawuba, in the statement, said, “This strategy may include a combination of options such as Rights Issue or Private Placement. The fact remains that we are confident in our ability to meet the CBN’s capital adequacy requirements and will keep investors informed as we progress.”
