Abbey Mortgage Bank Plc is set to seek shareholders’ approval to raise a combined capital of up to N164.5 billion through a mix of equity and debt instruments, as the lender pursues an ambitious restructuring and expansion agenda.
The fundraising plan is contained in the notice for the bank’s 34th Annual General Meeting (AGM), scheduled to hold virtually on May 25, 2026, where shareholders will consider resolutions covering debt issuance, equity capital raising, and corporate restructuring initiatives.
According to the notice for the AGM, which was filed with the Nigerian Exchange (NGX), shareholders wishing to participate in the virtual AGM are advised to submit proxy forms to the bank’s registrars, Africa Prudential Plc, not later than 48 hours before the meeting.
What they are saying
According to the bank’s AGM notice signed by Company Secretary Geoff O. Amaghereonu, the capital raise comprises two components and will be issued in tranches and at terms to be determined by the directors, subject to regulatory approvals from the CBN, SEC, and the Nigerian Exchange Limited.
- First, the directors are seeking authority to raise approximately N64.55 billion in fresh equity capital through a private placement of 26.56 billion ordinary shares of 50 kobo each, priced at N2.43 per share.
- This would nearly triple the bank’s issued share capital from N5.08 billion — divided into about 10.15 billion ordinary shares — to approximately N18.36 billion upon completion.
- Second, shareholders will be asked to authorise a N100 billion Debt Issuance Programme, under which the bank may issue various classes of debt instruments.
- The issuance programmes may include senior unsecured or secured notes, subordinated debt, convertible securities, commercial papers, medium-term notes, and bonds.
The strategic initiatives are intended to refinance existing obligations, expand the bank’s loan portfolio, and strengthen its financial resilience for long-term growth within the evolving financial services landscape.
More insights
The explanatory notes to the AGM resolutions state that the fundraise also forms a key component of the bank’s broader corporate restructuring plan, aimed at enhancing capital adequacy, improving operational efficiency, and aligning the bank’s structure with applicable 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 states.
- Beyond the capital raise, shareholders at the AGM will also consider the declaration of a dividend of 12 kobo per 50 kobo share for the 2025 financial year, subject to appropriate withholding tax.
- If approved, payment will be made on the same day as the AGM — 25th May 2026 — to shareholders whose names appear on the register as of 12th May 2026.
The register of members will be closed from Wednesday, 13th May to Friday, 15th May 2026 for the purpose of updating shareholder records.
What you should know
The proposed equity raise, if approved and completed, would see the bank’s total issued shares expand by more than 260%, from roughly 10.15 billion to up to 36.72 billion ordinary shares of 50 kobo each, with the new shares ranking equally with existing shares in all respects.
- The Memorandum of Association will also be amended to reflect the enlarged share capital upon completion of the raise.
- With earnings per share at 21 kobo, up from 11 kobo in 2024, the proposed dividend of 12 kobo per 50 kobo ordinary share is a 100% increase over 6kobo in 2024, sustaining its resumed history of dividend payment since 2023.
- In its audited 2025 financial results, Abbey Mortgage Bank reported a pre-tax profit of N3.12 billion, representing a 154.32% increase compared to N1.22 billion recorded in the previous year.
- Post-tax profit settled at N2.16 billion after income tax expenses of N960.5 million, compared to N1.06 billion recorded in the prior year.
- The strong performance was driven by growth in interest income, which rose to N18.97 billion from N11.95 billion in 2024, with the net interest income at N5.08 billion, up 49.81% YoY from N3.40 billion.
After accounting for an impairment charge of N15.2 million, net operating income remained strong at N6.1 billion, representing a 62.66% increase from the previous year.
