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Stanbic IBTC Holdings Plc has announced plans to allocate 96.3% of the N148.7 billion raised from its recent rights issue to bolster its banking subsidiary. This strategic move demonstrates the group’s commitment to driving economic development through investments in critical sectors of the Nigerian economy.

The rights issue, which comprised 2.94 billion ordinary shares priced at N50.50 each, was offered on a five-for-22 basis to existing shareholders. At the ‘facts behind the issue’ event held at the Nigerian Exchange Limited (NGX) in Lagos, Acting Chief Executive Officer of Stanbic IBTC Group, Kunle Adedeji, outlined the group’s plans for the funds.

Adedeji stated that 96.3% of the rights issue proceeds will be deployed into the banking subsidiary, with specific allocations aimed at supporting key sectors of the economy. “We will allocate 42% to corporate and investment banking, focusing on counter-cyclical sectors such as manufacturing, power, agriculture, and telecommunications,” he said.

Additionally, 27% of the proceeds will be allocated to business and commercial banking, supporting SMEs and commercial enterprises, especially in general commerce. A further 11% will be utilised for personal and private banking, improving credit access for individuals and enhancing financial inclusion.

Adedeji emphasized that these allocations align with Stanbic IBTC’s mission to support industries critical to Nigeria’s economic growth, noting that the financial sector is central to achieving the country’s $1 trillion economy target.

The bank will also invest 14.11% of the proceeds in IT infrastructure upgrades, including modernising cyber and information security systems to enhance operational resilience and customer experience. 

“Furthermore, 2.22% will fund the expansion of its distribution network, with a focus on establishing eco-friendly and technologically advanced branches,” he said.

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