ZENITH BANK TO RAISE N290BN FRESH CAPITAL
1. Overview of Capital Raise:
- Amount to Raise: Zenith Bank plans to raise approximately ₦290 billion.
- Purpose: The amount exceeds the ₦230 billion required by the Central Bank of Nigeria (CBN) for recapitalization.
2. Details of the Capital Raise:
- Structure: The capital raise will consist of:
- Rights Issue: 5,232,748,964 ordinary shares of 50 Kobo each at ₦36.00 per share.
- Public Offer: 2,767,251,036 ordinary shares of 50 Kobo each at ₦36.50 per share.
3. Rights Issue:
- Eligibility: Existing shareholders.
- Terms: One new ordinary share for every six existing shares held as of July 24, 2024.
- Purpose: To allow current shareholders to increase their stakes.
4. Public Offer:
- Eligibility: Open to the general public.
- Purpose: To attract new investors who are not current shareholders.
5. Key Statements:
- Dr. Adaora Umeoji, Group Managing Director/CEO:
- Expressed satisfaction with the enthusiasm from existing shareholders.
- Emphasized the importance of including new investors to enhance the bank’s ownership base.
- Highlighted Zenith Bank's leadership in tier-1 capital and its track record of high dividend payments.
6. Utilization of Proceeds:
- Expansion: To grow banking operations across Africa and internationally.
- Technology: Investment in banking technology infrastructure.
- Working Capital: Support for ongoing capital needs.
7. Roles and Recognition:
- Stanbic IBTC Capital Limited: Lead issuing house for the capital raise, praised Zenith Bank’s commitment and anticipated positive impact on the capital market.
- Other Joint Issuing Houses: Quantum Zenith Capital & Investments Ltd, CardinalStone Partners Ltd, Meristem Capital Ltd, Chapel Hill Denham Advisory Ltd, Coronation Merchant Bank Ltd, Vetiva Advisory Services Ltd.
8. Timeline:
- Offer Period: Opens on August 1, 2024, and closes on September 9, 2024.
9. Regulatory Context:
- CBN Recapitalisation Directive: Requires commercial banks with international authorization to have a capital base of ₦500 billion and national banks ₦200 billion by March 31, 2026.
1. Overview of Capital Raise:
- Amount to Raise: Zenith Bank plans to raise approximately ₦290 billion.
- Purpose: The amount exceeds the ₦230 billion required by the Central Bank of Nigeria (CBN) for recapitalization.
2. Details of the Capital Raise:
- Structure: The capital raise will consist of:
- Rights Issue: 5,232,748,964 ordinary shares of 50 Kobo each at ₦36.00 per share.
- Public Offer: 2,767,251,036 ordinary shares of 50 Kobo each at ₦36.50 per share.
3. Rights Issue:
- Eligibility: Existing shareholders.
- Terms: One new ordinary share for every six existing shares held as of July 24, 2024.
- Purpose: To allow current shareholders to increase their stakes.
4. Public Offer:
- Eligibility: Open to the general public.
- Purpose: To attract new investors who are not current shareholders.
5. Key Statements:
- Dr. Adaora Umeoji, Group Managing Director/CEO:
- Expressed satisfaction with the enthusiasm from existing shareholders.
- Emphasized the importance of including new investors to enhance the bank’s ownership base.
- Highlighted Zenith Bank's leadership in tier-1 capital and its track record of high dividend payments.
6. Utilization of Proceeds:
- Expansion: To grow banking operations across Africa and internationally.
- Technology: Investment in banking technology infrastructure.
- Working Capital: Support for ongoing capital needs.
7. Roles and Recognition:
- Stanbic IBTC Capital Limited: Lead issuing house for the capital raise, praised Zenith Bank’s commitment and anticipated positive impact on the capital market.
- Other Joint Issuing Houses: Quantum Zenith Capital & Investments Ltd, CardinalStone Partners Ltd, Meristem Capital Ltd, Chapel Hill Denham Advisory Ltd, Coronation Merchant Bank Ltd, Vetiva Advisory Services Ltd.
8. Timeline:
- Offer Period: Opens on August 1, 2024, and closes on September 9, 2024.
9. Regulatory Context:
- CBN Recapitalisation Directive: Requires commercial banks with international authorization to have a capital base of ₦500 billion and national banks ₦200 billion by March 31, 2026.