Stanbic IBTC Allocates 27% of Rights Issue Proceeds to Support SMEs and Commercial Banking

Stanbic IBTC Holdings Plc has unveiled plans to invest 27% of the N148.71 billion raised from its ongoing rights issue into small and medium-sized enterprises (SMEs) and commercial banking. The investment aims to foster growth in the general commerce sector, which is essential to Nigeria’s economic development. The move aligns with Stanbic IBTC’s strategic objectives of supporting key sectors, promoting financial inclusion, and catalyzing sustainable economic growth.

The rights issue, consisting of 2.94 billion ordinary shares priced at N50.50 each, is being offered on a basis of five new shares for every 22 shares held by current shareholders. In addition to the SME and commercial banking allocation, the company plans to channel 42% of the funds into corporate and investment banking to strengthen critical sectors like manufacturing, power, agriculture, and telecommunications. A portion of the proceeds will also go towards IT infrastructure upgrades and expanding environmentally friendly branches.

Stanbic IBTC’s positive financial performance for the nine months ending September 2024, which saw a 95% increase in gross earnings, further supports its commitment to shareholder value and economic growth. Industry leaders, including the CEO of NGX Limited, Jude Chiemeka, have praised the company’s efforts, highlighting how access to capital and transparency in the capital market can enhance economic development.

Source: PUNCH