Stanbic IBTC Holdings is set to present a proposal to its shareholders on May 16 for a fundraising endeavor amounting to ₦550 billion. This move, outlined in a regulatory filing submitted on Wednesday, entails the issuance of bonds and a rights issue, aiming to bolster the company’s capital base.
Joining the ranks of industry peers like Access Holdings, GTCO, and Zenith Bank Plc, Stanbic IBTC responds to revised capital requirements mandated by the Central Bank. As the banking subsidiary of Stanbic IBTC Holdings Plc, the institution operates as a Tier 2 bank, with a stipulated capital requirement of ₦200 billion.
The fundraising strategy outlined by Stanbic IBTC entails the issuance of debt securities valued at ₦400 billion, alongside an additional ₦150 billion through a rights issue.
In contrast to other financial entities like Access Bank, Stanbic IBTC’s share subscription process will initially involve a public rights issue. However, in cases of under-subscription, the company plans to offer unsubscribed shares to existing investors before considering other interested parties.
The debt issuance program will encompass various types of securities, including senior unsecured or secured, subordinated, convertible, preferred, equity-linked, or other forms of debt obligations. This initiative will be executed through public offerings, private placements, additional tier one or tier two capital raisings, investments, book building processes, or alternative methods.
Source: TechCabal