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Fidelity Bank has announced plans to raise additional funds through private placements to meet the Central Bank of Nigeria’s new capital threshold for banks operating in the country. This decision was approved by stakeholders at the bank’s recently held extraordinary general meeting.

According to the resolutions filed on the Nigerian Exchange Limited portal, shareholders approved the issuance of up to 20,000,000,000 ordinary shares of N0.50 kobo each in the share capital of the company. This represents not more than 30% of the company’s existing issued shares and paid-up capital.

The resolution states: “To issue, by way of one or more private placements, up to 20,000,000,000 ordinary shares of N0.50 kobo each in the share capital of the company… to one or more investors in such tranches and on such pricing, times, terms, and conditions as shall be determined by the board.”

Additionally, the resolution stipulates that the private placements “shall be carried out in conformity with applicable laws and subject to the procurement of relevant regulatory approvals.”

Prior to the approval of the private placement, shareholders had also approved an increase in the bank’s issued share capital from N26.70bn to N36.70bn. This increase involves the creation of up to 20,000,000,000 additional ordinary shares of N0.50 Kobo each.

Fidelity Bank had earlier successfully concluded the first phase of its equity capital raise, achieving an impressive 237.92% oversubscription in its public offer and 137.73% oversubscription in its rights offer.

Managing Director/Chief Executive Officer of Fidelity Bank Plc, Dr. Nneka Onyeali-Ikpe, expressed delight at the outcome of the combined offer, saying: “We are delighted with the outcome of this first phase of our capital raise. The strong investor participation reflects the market’s confidence in Fidelity Bank and our strategic direction.”

Dr. Onyeali-Ikpe added that the next phase of capital raising would position the bank for sustainable growth and improved service delivery. “As we go into the next phase of capital raising, we reaffirm our commitment to providing cutting-edge financial solutions to our customers and delivering sustainable returns to our stakeholders,” she said.

Fidelity Bank, which holds an international license, aims to raise N500 billion to meet its categorisation requirements.

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