FBNH targets ₦750bn capital base by Q1’25

FBN Holdings, one of Nigeria’s leading financial institutions, has unveiled ambitious plans to boost its capital base to approximately 750 billion naira by the first quarter of 2025. The announcement came in the aftermath of a detailed presentation on the Rights Issue at the Nigerian Exchange by the bank executives. Emphasizing that the strategy to raise capital had been in the works long before the recent CBN recapitalization order, the FBN executives expressed confidence in the robust investment case they had put forward. During a televised interview on CNBC Africa, a senior executive from FBN Holdings stated, 'This is something we had planned, not this month, not last month. As far back as one year ago, we were ready to go. This is the Rights Issue. We've made a presentation to show you where the bank is today, and we've made a very serious investment case here today.' In a show of commitment and belief in the bank's future, the executive revealed, 'I'm a shareholder as well, and I will take my rights, and we have described what those who take their rights stand to gain in terms of returns, in terms of revenue.' The decision to pursue a Rights Issue and raise substantial capital was backed by a solid financial foundation and a clear understanding of the institution's growth trajectory. The executive further explained, 'We are deliberating what we do. It's not about random figures. I did tell you, I did tell the market today that way before the new regulation, we knew our capital needs, and we went out to start this Rights Issue.' The roadmap presented by FBN Holdings outlined a planned capital raise to meet new regulatory requirements and position the bank for sustained growth, projecting a capital target of 750 billion naira. Offering insight into the pricing mechanism for the Rights Issue, the executive highlighted the significant discount being offered to existing shareholders. 'When we are issuing at 25 Naira per share, that's a massive discount to the book value. Book value means, as people will know, if you sell all the assets today and pay all the liabilities, you get 72 Naira for every share,' he explained. By making shares available at a substantial discount to the book value, FBN Holdings aims to incentivize current shareholders to participate and capitalize on the growth potential. Looking ahead, the bank remains optimistic about its upward trajectory and the value proposition it offers to investors. The executive urged stakeholders to review the bank's performance over the past years and consider the growth prospects based on the presented numbers. With a clear strategy in place and a commitment to fortifying its capital base, FBN Holdings is poised to navigate regulatory changes successfully and reinforce its position as a leading financial institution in Nigeria. In conclusion, the bank's move to target a capital base of 750 billion naira signifies a strategic effort to enhance financial strength and resilience in a rapidly evolving market landscape. As investors weigh their options, the discounted Rights Issue presents a compelling opportunity to partner with FBN Holdings on its journey towards sustainable growth and value creation.