Stanbic IBTC Holdings Plc has unveiled a strategic plan to invest a significant portion of the proceeds from its ongoing rights issue to stimulate Nigeria’s economic development, with a particular focus on small and medium-sized enterprises (SMEs) and commercial banking.
The financial institution plans to allocate 27 per cent of the N148.71 billion raised from the rights issue to bolster SMEs and commercial businesses, especially those operating within the general commerce sector. This aligns with the group’s mission to enhance financial inclusion and catalyze sustainable growth in key economic areas.
During the “Facts Behind the Issue” presentation at the Nigerian Exchange Group (NGX), the Acting Chief Executive Officer of Stanbic IBTC Group, Kunle Adedeji, emphasized the critical role SMEs play in driving economic expansion. “We are committed to channelling resources to sectors that have the capacity to catalyse sustainable growth. By supporting SMEs and commercial businesses, we aim to foster financial inclusion and economic expansion,” he stated.
The rights issue offers 2.94 billion ordinary shares at N50.50 per share, structured as five new shares for every 22 held. The funds raised will support several initiatives, including corporate and investment banking (42 per cent of proceeds), IT infrastructure upgrades (14.11 per cent), and the expansion of environmentally friendly and technology-driven branch networks (2.22 per cent).
Stanbic IBTC’s decision to channel a significant share of the funds into corporate and investment banking underscores its commitment to sectors like manufacturing, power, agriculture, and telecommunications—industries critical to national development.
This strategic move is bolstered by the group’s robust financial performance. For the nine months ending September 2024, Stanbic IBTC recorded a 95 per cent increase in gross earnings, reaching N650bn, while profit after tax rose by 67 per cent, reflecting its strong operational and financial capacity.
The CEO of NGX Limited, Jude Chiemeka, commended Stanbic IBTC for its proactive approach, noting that listed companies like Stanbic IBTC are better positioned to access growth capital while promoting transparency and contributing to tax compliance.
“Listed companies are not only better positioned to access capital for growth but also demonstrate higher levels of transparency and tax compliance, which significantly benefits the economy,” Chiemeka said.
