Zenith Bank has announced plans to raise approximately ₦290 billion in fresh capital, exceeding the Central Bank of Nigeria’s (CBN) required recapitalization amount of ₦230 billion.

The capital raise will consist of a rights issue and public offer, aimed at strengthening the bank’s tier-1 capital and enhancing its ownership base.

The rights issue will offer 5,232,748,964 ordinary shares at ₦36.00 per share to existing shareholders, while the public offer will make 2,767,251,036 ordinary shares available at ₦36.50 per share to the general public.

The proceeds from the capital raise will be utilized to expand the bank’s operations across Africa and internationally, invest in banking technology infrastructure, and support ongoing capital needs.

Stanbic IBTC Capital Limited, the lead issuing house, praised Zenith Bank’s commitment to the capital raise and anticipated a positive impact on the capital market.

The offer period is scheduled to open on August 1, 2024, and close on September 9, 2024. This capital raise is in response to the CBN’s recapitalization directive, requiring commercial banks to have a capital base of ₦500 billion by March 31, 2026.