Stanbic IBTC Commits 27% of N148.71bn Rights Issue to SMEs and Commercial Banking
Stanbic IBTC Holdings Plc has announced that 27% of the proceeds from its ongoing N148.71 billion rights issue will be invested in small and medium-sized enterprises (SMEs) and commercial banking operations, particularly in the general commerce sector.
This strategic allocation aligns with Stanbic IBTC’s goal of supporting Nigeria’s economic growth by providing financial backing to key business sectors.
Strengthening Business and Commercial Banking
During the company’s Facts Behind the Issue presentation at the Nigerian Exchange Group (NGX), the Acting Chief Executive Officer of Stanbic IBTC Group, Kunle Adedeji, emphasized the importance of this move.
“We are committed to channelling resources to sectors that have the capacity to catalyse sustainable growth. By supporting SMEs and commercial businesses, we aim to foster financial inclusion and economic expansion,” Adedeji stated.
Breakdown of the Rights Issue Utilization
The N148.71 billion rights issue, which consists of 2.94 billion ordinary shares priced at N50.50 per share, is being offered at a ratio of five new shares for every 22 existing shares held by shareholders. The funds raised will be allocated as follows:
• 42% to corporate and investment banking, supporting sectors such as manufacturing, power, agriculture, and telecommunications.
• 27% to business and commercial banking, focusing on SMEs and general commerce.
• 14.11% to IT infrastructure upgrades, enhancing digital banking and cybersecurity.
• 2.22% to expanding branch networks, incorporating environmentally friendly and tech-enabled facilities.
Financial Strength and Market Position
Stanbic IBTC’s financial performance reinforces its ability to deliver shareholder value. For the nine months ending September 2024, the bank recorded:
✅ N650 billion in gross earnings (a 95% increase year-on-year).
✅ 67% growth in profit after tax.
NGX Applauds Stanbic IBTC’s Initiative
CEO of NGX Limited, Jude Chiemeka, commended Stanbic IBTC for leveraging the capital market to raise funds.
“Listed companies are not only better positioned to access capital for growth but also demonstrate higher levels of transparency and tax compliance, which significantly benefits the economy.”
He further emphasized the role of the capital market in driving sustainable economic growth, highlighting its importance for businesses in manufacturing, telecommunications, and agriculture.
Conclusion
With this strategic funding allocation, Stanbic IBTC reinforces its commitment to driving financial inclusion, supporting business growth, and enhancing Nigeria’s economic landscape. The bank’s strong performance and targeted investment approach position it as a key player in fostering sustainable development.
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