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Stanbic IBTC seeks approval for ₦550 billion capital raise

Stanbic IBTC Holdings Plc has revealed plans to raise about N550bn through a debt issuance programme and a right issue

Stanbic IBTC Holdings is gearing up to seek shareholders' approval for a significant capital raise of ₦550 billion on May 16. The move, outlined in a recent regulatory filing, involves issuing bonds and a rights issue to secure the necessary capital.

Shareholders are also expected to grant waivers allowing the board to offer unsubscribed shares first to interested existing shareholders and later, if remaining, to interested investors on similar terms to the rights issue or offer for subscription.

This decision aligns with the trend observed among industry peers like Access Holdings, GTCO, and Zenith Bank Plc, who have taken similar steps to bolster their capital requirements following a Central Bank review.

Stanbic IBTC, the banking subsidiary of Stanbic IBTC Holdings Plc, aims to fulfil its Tier 2 bank status, necessitating a capital requirement of ₦200 billion. The proposed capital raise plan is to issue debt securities worth ₦400 billion and an additional ₦150 billion through a rights issue.

The debt issuance programme will include securities such as "senior unsecured or secured; subordinated; convertible; preferred; equity-linked or other forms of debt obligations.