Abbey Mortgage Seeks Shareholders’ Nod For N164.5bn Capital Raise

Abbey Mortgage Bank Plc is set to deepen its capital base and reposition for stronger competitiveness in Nigeria’s evolving financial services landscape, as it moves to secure shareholders’ approval for a combined capital raise of up to N164.5 billion through a mix of equity and debt instruments.

The proposed fundraising, as noted in the bank’s notice of its 34th Annual General Meeting (AGM) scheduled for May 25, 2026, is part of its restructuring and expansion agenda aimed at strengthening balance sheet resilience, expanding lending capacity, and ensuring compliance with regulatory capital requirements.

According to the AGM notice filed with the Nigerian Exchange Limited, shareholders will deliberate on resolutions authorising a private placement and a broad debt issuance programme, alongside other corporate actions designed to reposition the institution for long-term growth.

The notice signed by its Company Secretary, Geoff Amaghereonu, noted that the capital raise will be executed in tranches and on terms to be determined by the board, subject to approvals from key regulators, including the Central Bank of Nigeria, the Securities and Exchange Commission of Nigeria, and the Nigerian Exchange.

At the core of the proposal is a plan to raise approximately N64.55 billion in fresh equity through a private placement of 26.56 billion ordinary shares of 50 kobo each at N2.43 per share. If approved, this would significantly expand the bank’s issued share capital from N5.08 billion to about N18.36 billion.

In addition, shareholders are being asked to authorise a N100 billion Debt Issuance Programme, which will give the bank flexibility to raise funds through instruments such as senior or subordinated notes, convertible securities, commercial papers, medium-term notes, and bonds.

Management explained that the dual-pronged funding strategy is designed to refinance existing obligations, strengthen liquidity buffers, and support aggressive loan portfolio expansion in a tightening financial environment.

“This will support the bank’s ability to meet minimum capital thresholds while ensuring continued compliance with industry regulations and sustaining business continuity,” the notice stated.

The proposed capital restructuring also forms part of a broader strategic realignment to improve operational efficiency and enhance the bank’s financial stability within Nigeria’s competitive mortgage and banking sector.

Beyond the capital plan, shareholders will also consider a dividend declaration of 12 kobo per 50 kobo share for the 2025 financial year, subject to withholding tax. If approved, the dividend will be paid on the day of the AGM to shareholders on the register as of May 12, 2026.

Meanwhile, the register of members is expected to be closed from May 13 to May 15, 2026, to allow for updates to shareholder records ahead of the virtual meeting. Proxy forms are to be submitted to registrars, Africa Prudential Plc, not later than 48 hours before the AGM.