Stanbic IBTC Surpasses CBN Recapitalisation Goal with 21.9% Rights Issue Oversubscription
Stanbic IBTC Holdings has successfully met the Central Bank of Nigeria’s (CBN) N200 billion recapitalisation mandate, marking a significant milestone in its strategic growth. This achievement follows a highly successful Rights Issue that raised N148.7 billion, backed by overwhelming support from existing shareholders. Notably, the issue experienced an oversubscription rate of 21.9%, resulting in an additional N181.4 billion in capital, underscoring investor confidence and trust in the bank’s vision and resilience amid a challenging financial environment.
Speaking about the outcome, Acting CEO Dr. Kunle Adedeji stated, “After verification by the CBN and final approval from the Securities and Exchange Commission, we are pleased to announce the successful closing of our Rights Issue. The strong participation from our shareholders, leading to a 21.9% oversubscription, reflects their confidence in Stanbic IBTC’s strategic direction and operational strength.”
This capital injection aligns with Nigeria’s broader banking sector reforms, which, as of March 2024, mandated commercial banks with international licensing to raise their capital base to N500 billion, and national banks to N200 billion. Regional banks are required to reach at least N50 billion. Additionally, Stanbic IBTC Bank received a N140 billion capital infusion from its parent company, further bolstering its capacity to meet customer needs and compete effectively in the market.
Wole Adeniyi, CEO of Stanbic IBTC Bank, emphasized the significance of this development: “The additional capital positions us to seize new opportunities and expand our service offerings. We appreciate the dedication of our regulators, stakeholders, and partners in supporting this milestone and look forward to a resilient and prosperous future.”
This successful recapitalisation not only fulfills regulatory requirements but also demonstrates the bank’s commitment to resilience, growth, and stakeholder value. Stanbic IBTC remains dedicated to fostering economic development and creating sustainable value for its clients and shareholders as it navigates an evolving financial landscape.