The management of FBN Holdings has budgeted an estimated N103.1 billion for its corporate business and retail business lending segments of the market, following its plan to raise N150 billion from its existing shareholders.
The Holdings recently held the signing ceremony to commence the rights issue offering of 5,982,548,799 ordinary shares of 50 kobo each at N25.00 per share to its existing shareholder on the basis of one new ordinary share for every six ordinary shares held as of October 18, 2024.
This is an estimated N150 billion FBN Holdings seeks to raise from its existing shareholders by way of rights issue.
Extracts from the offer raising prospectus of the financial institution revealed that lending to the corporate business segment gets N77.34 billion, while lending to the retail business segment gets a budget of N25.78 billion.
This covers 68.95 per cent of the N150 billion proposed rights issue the management seeks to raise from existing shareholders.
Out of the N150 billion, a total of N29.46 billion was budgeted to support international business expansion and N14.73 billion for investment in automation and digital banking.
On investment in automation and digital banking, the financial institution said: “The group is positioned to continuously ensure
seamless and convenient banking experience for its customers through significant investment in automation and digital technologies via its flagship mobile banking app, FirstMobile, and its internet banking platform, FirstOnline.
“Through FirstMobile, and the new Lit App, First Bank has effectively acquired a broad cross-section of the target demography, with a clear proposition of owning bank accounts and utilising various financial services from the comfort of their locations.
“In line with First Bank’s commitment to providing customers with the best-in-class electronic banking experience, the bank plans to upgrade the FirstMobile and FirstOnline with additional services and features while driving customer adoption of the platforms.”
The offer, however, is part of the company’s plan to recapitalise its commercial banking subsidiary, First Bank of Nigeria Limited, with a view to increasing the bank’s capacity for business development and growth.
Chairman, FBN Holdings, Olufemi Otedola in a statement from the document urged shareholders that: “By supporting the Rights issue through accepting your rights, the company will be well positioned to achieve its strategic objectives and to deliver improved returns to all stakeholders, going forward.”
23 full financial year.
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