• Thursday, May 23, 2024
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First Bank set to raise N300bn in new capital to meet CBN limit

First Bank set to raise N300bn in new capital to meet CBN limit

Nigerian banking group FBN Holdings plans to seek shareholder approval this month to raise up to 300 billion naira ($241 million) through a public share offering or private share sale in Nigeria or abroad, it said in a notice on Monday.

The holding company, which owns First Bank, one of Nigeria’s top tier lenders, said it will ask shareholders for permission to raise the funds at a meeting set for April 30.

Shares of Nigerian-based FBN Holdings which hit a high of 43.95 naira in March, last traded at 30.50 naira on the Nigerian bourse.

A recapitalisation is looming in Africa’s biggest economy and most populous nation after the central bank last month announced minimum capital requirements for lenders to try to get banks to play a bigger role in boosting economic growth.

Rival lender Access Holding Plc, which owns Access Bank, the country’s biggest lender, last month said it will seek shareholders approval in April to launch a $1.5 billion capital raising programme.