Zenith Bank Embarks on Global Expansion with 289.38 Billion Capital Raise
Zenith Bank Plc has unveiled an ambitious plan to raise N289.38 billion in capital as part of its strategy to support global expansion, enhance IT infrastructure, and bolster financing for the real sector, particularly focusing on retail and SME segments. This capital raise marks a significant step in the bank’s broader strategy to strengthen its presence both domestically and internationally.
The capital will be raised through a combined offer of eight billion shares, which includes both a rights issue and a public offer. Specifically, the rights issue will offer 5.23 billion shares to existing shareholders at N36.00 per share, while the public offer will present 2.77 billion ordinary shares at N36.50 per share. The offer, which opened on August 1, 2024, is set to close on September 9, 2024.
Zenith Bank plans to allocate the proceeds from this capital raise to increase its capital base and pursue several strategic objectives. These include the development of IT infrastructure, the provision of working capital, and the financing of business developments, with a particular emphasis on expanding into new geographic markets. A key part of this expansion strategy includes the establishment of a branch in Paris, France, which is expected to enhance the bank’s business prospects within the West African Economic and Monetary Union (UEMOA) and the Economic and Monetary Community of Central Africa (CEMAC) regions.
Dr. Adaora Umeoji, the Group Managing Director of Zenith Bank, emphasized the institution’s strong track record in efficiently utilizing capital and its commitment to reinforcing its position in key global financial hubs. “We are focused on solidifying our presence in key markets and enhancing our IT infrastructure to better serve our clients,” Umeoji stated. She also highlighted the bank’s Tier-1 capital of N1.9 trillion, the highest in the Nigerian banking industry, as a testament to its financial strength and stability.
In addition to its expansion plans, Zenith Bank has maintained a consistent record of rewarding its shareholders, with a dividend payout of N4.00 per share, positioning it as the highest dividend-paying bank in Nigeria. Umeoji attributed this success to the bank’s strong brand loyalty and prudent financial management.
The Chairman of the Nigerian Exchange, Ahonsi Unuigbe, lauded Zenith Bank’s continued relevance and leadership in the financial services industry, noting that the bank’s strategic initiatives position it well for sustainable long-term growth.
Zenith Bank’s capital raise and global expansion plans underscore its commitment to maintaining its leadership position in the Nigerian banking sector while pursuing growth opportunities on the international stage.
