Zenith Bank proposes share increase of 31.3bn in recapitalisation push

Nigerian lender Zenith Bank Plc seeks to create 31.3 billion new shares, aiming to raise additional capital. The exact amount wasn’t disclosed in a filing with the Nigerian Exchange Group (NGX) on Friday.

This move comes in response to the Central Bank of Nigeria’s (CBN) recent announcement of a ten-fold increase in minimum capital requirements for banks. The last such adjustment occurred nearly two decades ago.

The bank proposes amending its articles of association to reflect the new share capital of N31.3 billion. This would bring the total issued shares to 62.7 billion, with each share valued at 50 kobo.

“ Clause 6 of the Company’s Memorandum of Association and Clause 9 of the Company’s Articles of Association are hereby amended to reflect the new share capital of N31.3 billion by the creation of the addition of up to 31.3 billion ordinary shares of NO.50 Kobo each ranking pari-passu with the existing ordinary shares of the company bringing the total issued shares of the Company to 62.7 billion, ordinary shares of NO.50 Kobo each,” the bank said.

The plan was detailed in a notice ahead of its third Annual General Meeting to be held on May 8.