Stanbic IBTC Holdings will seek shareholders’ approval to raise ₦550 billion on May 16. According to a regulatory filing submitted on Wednesday, the company has proposed the sale of bonds and a rights issue to raise the needed capital.
Stanbic joins industry peers like Access Holdings, GTCO, and Zenith Bank Plc, which have made similar moves to increase their capital requirements after a review by the Central Bank. Stanbic IBTC, the banking subsidiary of Stanbic IBTC Holdings Plc, is a Tier 2 bank with a capital requirement of ₦200 billion.
It plans to issue debt securities worth ₦400 billion and an additional ₦150 billion through a rights issue.
Unlike other financial institutions such as Access Bank, subscription for Stanbic IBTC’s shares will first be by a public rights issue. However, in the event of an under-subscription, the company will offer the unsubscribed shares first to interested existing investors and later to interested investors.
The debt issuance programme will include securities such as “senior unsecured or secured; subordinated; convertible; preferred; equity-linked or such other forms of debt obligations.” The…
Frank Eleanya
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https://techcabal.com/2024/04/24/stanbic-ibtc-to-raise-n550bn/
