Nigerian banking group, FBN Holdings is planning to seek shareholders’ approval this month to shore up its capital by N300 billion ($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 N43.95 in March, last traded at N30.50 on the Nigerian Exchange .
A recapitalisation is looming in the banking sector after the Central Bank of Nigeria (CBN), last month announced the banking sector recapitalisation programme, a regulatory initiative that requires banks to increase their minimum paid-in common equity capital to a specified amount according to their licence category and authorisation within 24 months, to try to get banks to play a bigger role in boosting economic growth.
The apex bank had directed commercial banks with international authorisation to increase their capital base to N500 billion and national banks to N200 billion, while those with regional authorisation are expected to achieve a N50 billion capital floor.
Similarly, non-interest banks with national and regional authorisations will need to increase their capital to N20 billion and N10 billion, respectively.
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