Recapitalisation: Zenith Bank to raise funds in international capital market

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Zenith Bank has announced plans to raise an undisclosed amount in the international and Nigerian capital markets.

According to the company, the funds shall be raised through the issuance of ordinary shares, or preference shares, whether by way of private placement, rights issue or both.

In a notice on Friday, Zenith Bank said it will hold its 33rd annual general meeting on May 8 for the purpose of establishing a capital raising programme and conducting other special businesses. Zenith Bank said shareholders would decide whether the company’s board of directors should be “authorised to establish a capital raising programme in the Nigerian or International capital market of up to the authorised capital of the company, through the issuance of ordinary shares, or preference shares, whether by way of a public offering, private placement, rights issue or both, or any other method or combination of methods”.issued share capital — from N15,698,246,893.

Zenith Bank said the directors would be authorised to cancel any outstanding shares not required at the end of the capital raising programme.anks have been announcing plans to raise funds after the Central Bank of Nigeria , on March 28,commercial, merchant and non-interest banks to increase their minimum capital requirements.

CBN adjusted the capital base for commercial banks with international licences to N500 billion, while national and regional financial institutions’ capital bases were pegged at N200 billion and N50 billion, respectively.a plan to sell shares to private investors and existing shareholders to raise N300 billion.the board has proposed to raise $750,000,000 by way of public offerings and private placements.

 

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