The Board of Directors of Abbey Mortgage Bank has approved plans to raise at least N100 billion through various financial instruments, in a move aimed at expanding its operations and meeting regulatory requirements.
The capital raise will support the bank’s transition from a primary mortgage bank to a regional commercial bank, aligning with the Central Bank of Nigeria’s (CBN) minimum capital requirements of N50 billion.
In January, Abbey Mortgage Bank sought shareholders’ approval to proceed with its plan to convert from a mortgage bank to a regional commercial bank, which was granted by the shareholders.
In a statement after it’s 33rd Annual General Meeting (AGM) on Wednesday, signed by Company Secretary, Geoff Amaghereonu, the approved funding strategy includes the issuance of shares via rights issues and public offers, alongside financial instruments such as global depository receipts, commercial papers, loans, convertible and non-convertible securities, medium-term notes, and bonds.
The bank aims to leverage book-building and other financial processes to optimize capital acquisition while complying with all directives from financial regulatory authorities.
The decision emphasized the institution’s commitment to strengthening its financial standing and expanding its services as it moves toward regional banking operations.
Industry experts have noted that the shift from mortgage banking to regional commercial banking will provide increased financial inclusion and access to broader banking services, particularly in underserved areas. The move is also expected to position the bank competitively within Nigeria’s evolving financial sector.