FBN Holdings has disclosed that it will be seeking shareholders’ approval to raise N300bn additional capital.
In a notice of its extraordinary general meeting filed with the Nigerian Exchange Limited on Monday, the financial holding company said the meeting would be held virtually at the end of the month.
According to the notice, shareholders would consider and vote on the special business “that the company be and is hereby authorised to undertake a capital raise of up to N300,000,000,000.00 (three hundred billion naira)”.
“The capital raise transaction shall be by the issuance of shares via a public offering, private placement, rights issue in the Nigerian or international capital markets, at price(s) to be determined by way of a book building process or any other valuation method or combination of methods, in such tranches, series or proportions and at such periods or dates, coupon or interest rates, within such maturity periods and upon such other terms and conditions as may be determined by the board of directors (the “directors”), subject to obtaining the approvals of the relevant regulatory authorities,” it stated.
This comes as the Central Bank of Nigeria reviewed upward the capital base of commercial, merchant and non-interest banks and promoters of new banks in the country.
Citing both domestic and global shocks, the apex bank in a statement signed by Sidi Ali, the acting director, Corporate Communications, CBN, said it had become necessary to raise the capital base of the banks.
It, then, directed commercial banks with international authorisation to increase their capital base to N500bn and national banks to N200bn while those with regional authorisation are expected to achieve a N50bn capital floor.
It also mandated non-interest banks with national and regional authorisations to increase their capital to N20bn and N10bn, respectively.
In October, FBN Holdings Plc sought approval from the NGX to raise N139bn in additional capital through a rights issue.
Ahead of its 11th annual general meeting in July, the financial institution had revealed plans to raise capital by way of a rights issue for future expansion projects.
