Banks Recapitalization Watch for the Week Ended May 15, 2025

This week, on the recapitalisation watch, we review the recapitalisation status of selected banks regarding their capital raise programmes.

• Access Holdings has met the regulatory minimum capital threshold for banks with international licenses following the conclusion of its Right Issue of 17,772,612,811 ordinary Shares of 50 Kobo each at N19.75 Kobo per share, raising the target amount of N351bn. This development has positioned Access Bank Plc as the first bank to meet the Central Bank of Nigeria’s (CBN’s) N500 billion minimum capital requirements for banks with International Authorisations ahead of the March 2026 regulatory deadline.
• Wema Bank Plc’s ongoing Rights Issue of 14,286,785,417 ordinary shares of 50 Kobo each at N10.45 per share remains open and is scheduled to close on Monday, May 21, 2025. The offer is based on two (2) new ordinary shares for every three (3) ordinary shares held as of the close of business on Wednesday, March 5, 2025. This Rights Issue is a key component of Wema Bank’s capital-raising strategy, which aims to strengthen its competitive position in Nigeria’s banking sector and accelerate its digital transformation programme.
• Zenith Bank Plc has also met its capital requirement after reporting a strong performance at its Annual General Meeting (AGM) held on April 29, 2025. It announced a 160% subscription to its combined Rights Issue and Public Offer. The bank’s share capital is now N614bn.
• UBA was to announce a recapitalisation plan during its last Annual General Meeting (AGM) but mentioned that it would be made available to investors/shareholders before the end of H1 2025.
• First Holdco is set to proceed with its N350bn Private Placement, marking the next phase of its capital-raise programme. This follows the successful completion of its N150bn Rights Issue, which was oversubscribed by 25%, bringing total subscription to N187.6bn. 
• Fidelity Bank has advanced its recapitalisation plans, moving into the second phase with a Private Placement that has received Central Bank of Nigeria (CBN) approval to meet the remaining minimum capital requirement. It is expected to commence in the second half (H2) of 2025.
• Unity Bank’s ongoing engagement and proposed business combination with Providus Bank have prevented them from announcing the status of their recapitalisation watch.

Analysts at Proshare note that investors’ response to bank recapitalisation has been enthusiastic. The success of some of the offers reflects market confidence in the stability and long-term growth of the banks. However, the ongoing and upcoming offers, particularly those of Wema Bank, UBA, and Fidelity Bank, will be critical in determining the overall pace of recapitalisation across the sector (see Table 1 below). 

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Adapted From The Proshare