(Ecofin Agency) - This move comes as part of stricter capital requirements aimed at supporting economic growth and strengthening the resilience of Nigeria's financial system.

Zenith Bank announced on January 26 it raised 350.4 billion Naira (226 million dollars) through a rights issue and public offer launched a few months ago. The dual fundraising initiative, which was oversubscribed by more than 160%, has increased the bank’s capital to 614.65 billion Naira.

The hybrid offer, approved by the Central Bank of Nigeria (CBN) and the Securities and Exchange Commission (SEC), included two components. The rights issue involved 5.23 billion ordinary shares priced at 36 Naira each and was fully subscribed at 100.18%. The public offer featured 2.77 billion ordinary shares at 36.50 Naira each, which was oversubscribed at 160.47%, leading to the allocation of 4.44 billion shares.

Opened on August 1, 2024, and closed on September 23, 2024, the offer initially aimed to raise 290 billion Naira. However, due to strong interest from local and international investors, the total raised surpassed expectations, reaching 350.46 billion Naira.

This achievement makes Zenith Bank one of the first Nigerian banks to exceed the CBN’s regulatory capital requirements well ahead of the March 2026 deadline. In October 2024, Bloomberg reported that five of Nigeria’s largest banks, including Zenith, had successfully raised new capital. Collectively, these banks secured 1.26 trillion Naira between July and September 2024 to meet the new regulatory threshold of 500 billion Naira in capital for commercial banks with international licenses—a requirement ten times higher than the previous standard.

Zenith Bank relied on a fully digital approach to attract investors, utilizing the e-offer platform, also known as NGX Invest. This digital solution, developed by the Nigerian Exchange, simplifies the issuance and subscription of shares and other financial instruments in Nigeria’s capital markets.

The funds raised will bolster Zenith Bank’s leadership position, support its expansion across Africa and Europe, and fund strategic initiatives, particularly in technology, the bank said in a statement.