Zenith Bank raises N350bn via hybrid offer to meet CBN’s capital base requirement

Zenith Bank says it has raised N350.46 billion through rights issue and public offer to meet the Central Bank of Nigeria’s (CBN) minimum capital requirement.

In a statement dated January 24, but published on the Nigerian Exchange Group (NGX) on Monday, Michael Otu, Zenith Bank’s company secretary, said the bank has secured full regulatory approval from both the CBN and the Securities and Exchange Commission (SEC) for its recently concluded hybrid offer.

Otu explained that the hybrid offer included a rights issue of 5,232,748,964 ordinary shares of 50,000 each at N36 per share, along with a public offer of 2,767,251,036 ordinary shares of 50,000 each at N36.5 per share.

“The Public Offer was 160.47% subscribed, with a total of 4,440,587,250 Ordinary Shares allotted based on the terms of the Offer and the CBN’s Capital Verification Exercise (“CVE”),” Otu said.

“The Rights Issue was also 100.18% subscribed with a total 5,232,748,964 ordinary shares allotted.

“The target of the Hybrid Offer was thereby achieved with the Company raising a total of N350,460,397,329.

“The Hybrid Offer garnered substantial interest from domestic and international investors.

“This development has positioned the Company as one of the few banks in Nigeria to meet and even surpass the Central Bank of Nigeria’s N500 billion minimum capital requirements for Banks with International Authorization well ahead of the March 2026 regulatory deadline.

“The bank’s share capital would now rise to N614.65bn, which is N114.65bn above the regulatory minimum requirement.

“The Company has once again reiterated its leadership and pole position amongst the Nigerian banks.

“It successfully executed a largely digital offer embracing the power of technology to improve access to equity capital market as it seamlessly leveraged the Nigerian Exchange Limited’s e-Offer platform.”

Otu added that Zenith Bank plans to use the hybrid offer proceeds to solidify its market leadership, expand operations across Africa and Europe, and invest in technology and other growth initiatives.

On March 28, 2024, CBN announced an increase in the minimum capital requirements for commercial banks with international licences to N500 billion.

The following month, Zenith Bank disclosed its plans to raise funds through a share issuance, possibly via private placement, rights issue, or both, in both Nigerian and international markets.