Zenith Bank Plc has announced plans to raise up to $500 million in fresh capital through a mix of Eurobond issuance and a rights offer, as part of efforts to strengthen its balance sheet and meet the Central Bank of Nigeria’s (CBN) new minimum capital requirements.
The bank disclosed the plan in a notice to the Nigerian Exchange Limited (NGX) on Sunday, stating that the capital raising programme will be executed in phases, subject to market conditions and regulatory approvals.
According to the statement, Zenith Bank will issue a $500 million Eurobond to international investors and also undertake a rights issue to its existing shareholders. The funds, the bank said, will be deployed to enhance its capital adequacy, support lending to key sectors, and position the bank for future growth.
The move comes after the CBN in March 2024 directed commercial banks to shore up their minimum capital bases within two years. Under the new framework, international banks are required to raise their capital to N500 billion, national banks to N200 billion, and regional banks to N50 billion.
Zenith Bank, one of Nigeria’s largest lenders by assets and profitability, said the initiative underlines its commitment to maintaining leadership in the banking sector while supporting Nigeria’s economic development.
“The capital raising exercise is in line with the bank’s strategy of maintaining a strong capital buffer to support business growth, sustain investor confidence, and ensure full compliance with regulatory requirements,” the notice stated.
Analysts note that the move reflects growing momentum among tier-1 banks to comply early with the recapitalisation mandate, as rivals including Access Holdings, UBA, and FBN Holdings have also unveiled similar plans.
Zenith Bank, which reported a profit-before-tax of N505 billion in H1 2025, is widely seen as being well-positioned to attract strong investor interest for both its Eurobond and rights issue.
The recapitalisation exercise is expected to reshape Nigeria’s banking industry, with consolidation and fresh foreign inflows anticipated as lenders race to meet the CBN’s deadline.
Nume Ekeghe
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