Abbey Mortgage seeks approval to raise N164.5bn capital

Date:

By Abubakar Yunusa

 

Abbey Mortgage Bank Plc is seeking shareholders’ approval to raise up to N164.5bn through a combination of equity and debt instruments as part of its restructuring and expansion plans.

The proposal is contained in the notice for the bank’s 34th Annual General Meeting scheduled to hold virtually on May 25, 2026.

Shareholders at the meeting are expected to consider resolutions covering equity capital raising, debt issuance and corporate restructuring initiatives.

According to the notice filed with the Nigerian Exchange, shareholders intending to participate in the virtual AGM were advised to submit proxy forms to the bank’s registrars, Africa Prudential Plc, at least 48 hours before the meeting.

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The AGM notice, signed by the Company Secretary, Geoff O. Amaghereonu, stated that the fundraising would be executed in tranches and subject to approvals from the Central Bank of Nigeria, the Securities and Exchange Commission and the Nigerian Exchange Limited.

Under the equity component, the directors are seeking approval to raise about N64.55bn through a private placement of 26.56 billion ordinary shares of 50 kobo each at N2.43 per share.

The move is expected to increase the bank’s issued share capital from N5.08bn, comprising about 10.15 billion ordinary shares, to N18.36bn after completion.

The bank is also seeking shareholders’ approval for a N100bn debt issuance programme.

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According to the notice, the programme may involve the issuance of senior unsecured or secured notes, subordinated debt, convertible securities, commercial papers, medium-term notes and bonds.

The bank said the initiatives were designed to refinance existing obligations, expand its loan portfolio and strengthen financial resilience for long-term growth.

It added that the capital raise formed part of a broader restructuring plan aimed at improving capital adequacy, boosting operational efficiency and aligning the institution with regulatory requirements.

“This will support the bank’s ability to meet minimum capital thresholds while ensuring continued compliance with industry regulations and sustaining business continuity,” the notice stated.

Shareholders will also consider the declaration of a dividend of 12 kobo per 50 kobo share for the 2025 financial year.

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If approved, the dividend will be paid on May 25, 2026, to shareholders whose names appear on the register as of May 12, 2026.

The bank added that its register of members would be closed from May 13 to May 15, 2026, to allow for the update of shareholders’ records.

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