The Rights Issue, which opened on 15 January 2025, and closes on 21 February 2025, offers existing shareholders the opportunity to subscribe to 2,944,772,083 Ordinary Shares of 50 kobo each at ₦50.50 per share.

The Rights Issue is structured on a ratio of 5 new shares for every 22 Ordinary Shares held as of 29 October 2024.

This strategic move aims to strengthen the company’s capital base, enhance its funding capacity and position it for sustainable growth as it will enable the company’s banking subsidiary meet the new minimum capital requirement set by the Central Bank of Nigeria (CBN), thereby ensuring regulatory compliance and potentially strengthening its Capital Adequacy Ratio (CAR).

For existing shareholders, the Rights Issue offers the opportunity to consolidate their ownership and support growth initiatives, at a discounted Issue price; and giving them the flexibility to either sell their rights on the NGX at a premium or maintain their proportional ownership by participating in the rights issue, catering to diverse investment strategies.

Speaking during the Facts Behind the Rights Issue event held at the Nigerian Exchange Group (NGX), Lagos, Dr. Kunle Adedeji, acting chief executive of Stanbic IBTC Holdings PLC, stated,

“The pricing of our Rights Issue acknowledges the confidence of our shareholders have in the company’s vision and strategy. We are committed to delivering value to our shareholders and stakeholders, and this Rights Issue is a critical step in achieving our goals.”

According to Dr. Adedeji,

“At Stanbic IBTC Holdings, we believe that strong shareholder support is the cornerstone of our growth. The Rights Issue reflects our stakeholders’ trust in our company and reinforces our commitment to delivering sustainable returns. Together, we will navigate the path to success and continue to achieve our strategic objectives.”

The proceeds from the Rights Issue would be largely invested in the company’s banking subsidiary to enable it meet the new minimum capital requirement set by the Central Bank of Nigeria (CBN) for banks and also enhance the company’s funding base and support its growth strategies across its key operations.

Wole Adeniyi, chief executive of Stanbic IBTC Bank, who co-presented the Facts Behind the Rights Issue, express delight at the Rights Issue, emphasising the motive behind it.

“This is a significant milestone in our journey to becoming Nigeria’s leading financial services organisation and a critical step in our efforts to meet the evolving needs of our customers and stakeholders. We are committed to maintaining our leadership position in the industry, and this capital raise will enable us to invest in our business, drive innovation, and deliver sustainable returns to our shareholders,” he said.

Mr. Adeniyi further added:

“We are grateful for the support of our shareholders, who have demonstrated their confidence in our ability to deliver long-term value. This rights issue will enable us to build on our strengths, capitalise on new opportunities, and drive growth and profitability in the coming years.”

“This is an exciting time for Stanbic IBTC Holdings PLC and Stanbic IBTC Bank, and we are pleased to have commenced this important capital raise. We are well-positioned to drive growth, innovation, and customer satisfaction, and we look forward to continuing to deliver value to our stakeholders,” Mr. Adeniyi said.

Stanbic IBTC Holdings PLC is a member of the Standard Bank Group, the largest bank by assets in Africa.

The company offers various financial services, including corporate and investment banking, personal and private banking, investment and asset management services.

The project, a $5 billion venture led by TotalEnergies SE, aims to connect Uganda’s oil fields to Tanzania’s coastal export facilities.

Despite the economic projection of tapping into Uganda’s oil reserves, discovered 17 years ago, the pipeline has been in a controversial situation for a while now. 

Environmental activists have raised alarms over the potential displacement of communities, destruction of wildlife habitats, and escalation of greenhouse gas emissions. 

These issues have led to reluctance from potential lenders and insurers, with some opting out of the project after activist pressure and a European Parliament resolution opposing the project.

The pipeline has faced challenges, including increased costs from an initial $4 billion estimate to the current $5 billion. The project has also seen a shift in stakeholder dynamics, with Chinese investors showing initial interest following Western banks’ withdrawal, only to later show reservations about the pipeline’s economic viability.

Nonkululeko Nyembezi, Chairman of Standard Bank, has disclosed that the bank has completed extensive internal governance processes, including environmental and social due diligence. While the full roster of lenders remains undisclosed, Nyembezi’s statements point to a solid backing for the project, which is expected to be finalized by December 2025.

Ugandan President Yoweri Museveni, along with support from China’s Xi Jinping, has been a vocal proponent of the pipeline, emphasizing its prospects to enhance the region’s economy. However, the project is still being opposed, with Human Rights Watch reporting inadequate compensation for displaced residents.

This recognition comes from a comprehensive report by Brand Finance, a renowned London-based brand valuation consultancy.

The annual analysis, which covered the period from March 2023 to March 2024, highlighted Stanbic IBTC’s impressive brand value growth.

The brand value nearly tripled within one year, reaching N75 billion with a remarkable 184% surge. This exceptional performance underscores the company’s strategic focus on enhancing financial services and delivering outstanding value to customers and stakeholders.

Dr. Demola Sogunle, chief executive of Stanbic IBTC Bank, expressed his profound joy and satisfaction, stating,

“This prestigious recognition reflects our team’s relentless hard work, dedication, and spirit of excellence. Our commitment to innovation, customer satisfaction, and strategic growth initiatives has distinguished us in Nigeria’s competitive financial  landscape  and positioned us as leaders vigorously driving change and innovation.”

He further added,

“We are honoured to receive this accolade, acknowledging our status as the fastest-growing brand in Nigeria. This recognition is a powerful motivator, compelling us to uphold our commitment to excellence,  client experience  and setting even higher standards in financial services. Customer satisfaction and excellent service delivery will remain at the heart of our operations.”

The report employed a rigorous methodology, including the royalty relief approach, which combines market and income valuation approaches.

This analysis highlighted the banking sector’s dominance in Nigeria’s brand landscape despite challenges such as currency devaluation and rising inflation. Stanbic IBTC’s recognition as the fastest-growing brand clearly indicates its strong brand and effective business strategy.

The company’s commitment to sustaining this growth trajectory and enhancing its contributions to Nigeria’s banking sector and overall economic development offers hope and promises a brighter future for the Nigerian banking sector.

In the recently released survey results, Stanbic IBTC emerged as a leader in retail, SME and corporate segments, securing the prestigious top spot in the KPMG experience score in retail and SME.

The Bank also claimed the third position in the corporate banking category.

The remarkable feat was sequel to the Group’s impressive performance in the 2022 edition of the survey, where the Bank claimed the number one spot in both retail and corporate banking categories.

KPMG’s research report emphasised Stanbic IBTC’s outstanding performance, citing excellence across critical aspects of the customer journey in the retail and SME segments.

The report attributed the success to the Bank’s unwavering commitment to innovation and a customer-centric approach.

Notably, the strategic focus on customer onboarding, particularly through a customer entrenchment strategy, was highlighted as a pivotal factor in this well-deserved recognition.

Expressing his delight at the recognition, Dr ‘Demola Sogunle, chief executive, Stanbic IBTC Holdings, stated;

“This achievement is a testament to our profound commitment to providing exceptional banking experience to our customers. We are proud to be recognised for our efforts in retail, SME, and corporate banking, and we will continue to innovate and prioritise our customers in all aspects of our operations.”

The survey, now on its 17th edition in Nigeria since its inception in 2007, covered an extensive customer base, with wide-ranging retail banking customers, thousands of SME banking customers, and hundreds of corporate banking customers participating in the research.

The rankings were based on the six pillars of performance – empathy, integrity, time, effort, expectation, and personalisation.

Wole Adeniyi, chief executive, Stanbic IBTC Bank, added, “Our success in this survey reflects the hard work and dedication of our team and the effectiveness of our customer-centric strategies. We will build on this momentum and continue to raise the bar in delivering superior banking services to our diverse customer base.”

Earlier this year, Fitch Ratings reaffirmed the National Long-Term Ratings of Stanbic IBTC Holdings and Stanbic IBTC Bank Limited at ‘AAA (nga).’

Fitch also assigned stable outlooks to the ratings, which underscored the financial institution’s resilience in a challenging operating environment, recognising its sound asset quality, robust capitalisation, consistent profitability, and the strategic importance of being a member of the Standard Bank Group.