Fidelity Bank has indicated that it would be raising additional funds via private placements to meet the new capital threshold of the Central Bank of Nigeria for banks operating in the country.

According to the resolutions from its recently held extraordinary general meeting, which was filed on the portal of the Nigerian Exchange Limited, stakeholders approved the additional raise.

Shareholders approved for the board of Fidelity Bank “to issue, by way of one or more private placements, up to 20,000,000,000 ordinary shares of N0.50 kobo each in the share capital of the company (being not more than 30 per cent of the company’s existing issued shares and paid-up capital) to one or more investors in such tranches and on such pricing, times, terms, and conditions as shall be determined by the board.”

“That the private placements in Resolution (4) above shall be carried out in conformity with applicable laws and subject to the procurement of relevant regulatory approvals.”

The resolution to raise additional funds was preceded by the approval of an increase in the issued share capital of the bank from N26.70bn divided into 53,400,000,000 ordinary shares of N0.50 Kobo each up to N36.70bn by the creation of up to 20,000,000,000 additional ordinary shares of N0.50 Kobo each with the new issued share capital ranking pari passu with the existing ordinary shares of the company.

Meanwhile, Fidelity Bank Plc successfully concluded the first phase of its equity capital raise, achieving an impressive 237.92 per cent oversubscription in its public offer and its rights offer recording 137.73 per cent oversubscription.

Managing Director/Chief Executive Officer of Fidelity Bank Plc, Dr. Nneka Onyeali-Ikpe, commenting on investor response to the combined offer, said, “We are delighted with the outcome of this first phase of our capital raise. The strong investor participation reflects the market’s confidence in Fidelity Bank and our strategic direction.”

She added that the next phase of capital raising would position the bank for sustainable growth and improved service delivery. “As we go into the next phase of capital raising, we reaffirm our commitment to providing cutting-edge financial solutions to our customers and delivering sustainable returns to our stakeholders,” she said.

Fidelity Bank, which has an international license, needs to raise N500bn to meet its categorisation.