Zenith Bank to Raise N290 Billion in New Capital

Zenith Bank Plc has announced plans to raise approximately N290 billion in fresh capital, surpassing the N230 billion required to meet the Central Bank of Nigeria’s new recapitalization mandate.

The bank revealed this at the signing ceremony for its rights issue and public offer in Lagos on Monday. The capital raise will include a rights issue of 5,232,748,964 ordinary shares priced at N36.00 each and a public offer of 2,767,251,036 ordinary shares priced at N36.50 each.

The rights issue allows existing shareholders to buy additional shares in proportion to their current holdings, with an offer of one new share for every six shares held as of July 24, 2024. The public offer, aimed at attracting new investors, is open to the general public.

Dr. Adaora Umeoji, Group Managing Director/Chief Executive Officer of Zenith Bank Plc, stated, “We have signed the transaction documents for Zenith Bank’s N290 billion rights issue and public offer, which exceeds the N230 billion required by the CBN. We are encouraged by the enthusiasm from our current shareholders and believe the public offer will allow new investors to become part of our premium brand.”

Dr. Umeoji also highlighted Zenith Bank’s top ranking in tier-1 capital by The Banker and Financial Times and its record as the highest dividend-paying bank in Nigeria over the past five years. She noted that the capital raise will support the bank’s expansion across Africa and internationally, invest in technology infrastructure, and maintain working capital.

Stanbic IBTC Capital Limited, the lead issuing house for the capital raise, praised Zenith Bank’s commitment to the transaction and expressed gratitude for the opportunity to lead the process. The issuing house highlighted the significance of combining a rights issue with a public offer.

The capital raise will open on August 1, 2024, and close on September 9, 2024. This move comes in response to the Central Bank of Nigeria’s directive for Deposit Money Banks to recapitalize, with varying requirements based on their authorization level. Banks must meet these requirements within 24 months from April 1, 2024, to March 31, 2026, through capital raising, mergers, acquisitions, or license changes.