FBN Holdings, a financial holding company, has announced its intention to seek shareholders’ approval to raise an additional N300 billion in capital. The decision was disclosed in a notice of its extraordinary general meeting filed with the Nigerian Exchange Limited. The meeting is scheduled to be held virtually by the end of the month.
Shareholders will deliberate and vote on the proposal to authorize the company to undertake the capital raise, which could involve various methods such as a public offering, private placement, or rights issue in the Nigerian or international capital markets. The terms and conditions of the capital raise, including the price and issuance of shares, will be determined by the board of directors, subject to regulatory approvals.
This move comes in light of the Central Bank of Nigeria’s recent review, which increased the capital base requirements for commercial, merchant, and non-interest banks, as well as promoters of new banks in the country. FBN Holdings’ decision to seek additional capital reflects its commitment to meeting regulatory requirements and strengthening its financial position in the evolving banking landscape.
Source: PUNCH