Abbey Mortgage Bank Plc is seeking shareholder approval to raise up to ₦164.5 billion through a combination of equity and debt issuances as part of a broader restructuring and growth strategy.
The proposal will be considered at the bank’s 34th Annual General Meeting (AGM), scheduled to hold virtually on May 25, 2026.
Breakdown of the Fundraising Plan
According to the AGM notice filed with the Nigerian Exchange Limited (NGX), the capital raise consists of two major components:
Equity Raise — ₦64.55 Billion
The bank plans to raise approximately ₦64.55 billion through a private placement involving:
- 26.56 billion ordinary shares
- Nominal value of 50 kobo each
- Offer price of ₦2.43 per share
If completed, the transaction would increase Abbey Mortgage Bank’s issued share capital from roughly ₦5.08 billion to about ₦18.36 billion.
The total issued shares would expand significantly from about 10.15 billion shares to approximately 36.72 billion shares.
Debt Programme — ₦100 Billion
Shareholders will also consider approval for a ₦100 billion debt issuance programme that may include:
- Bonds
- Commercial papers
- Medium-term notes
- Senior unsecured or secured notes
- Convertible securities
- Subordinated debt instruments
The bank said the programme would help refinance obligations, expand lending operations, and strengthen long-term financial resilience.
Corporate Restructuring Objectives
Management explained that the capital raise forms part of a broader restructuring initiative aimed at:
- Improving capital adequacy
- Enhancing operational efficiency
- Supporting regulatory compliance
- Strengthening business continuity
The bank noted that the strategy aligns with evolving industry requirements and long-term growth ambitions within Nigeria’s financial sector.
Dividend Proposal
Shareholders will also vote on a proposed dividend of 12 kobo per 50 kobo ordinary share for the 2025 financial year.
If approved:
- Payment date: May 25, 2026
- Qualification date: Shareholders on register as of May 12, 2026
The proposed dividend represents a 100% increase from the 6 kobo dividend paid in 2024.
Strong 2025 Financial Performance
Abbey Mortgage Bank reported substantial earnings growth in its audited 2025 financial results:
- Pre-tax profit rose 154.3% to ₦3.12 billion
- Profit after tax increased to ₦2.16 billion
- Earnings per share climbed to 21 kobo from 11 kobo
The performance was largely driven by stronger interest income:
- Interest income rose to ₦18.97 billion from ₦11.95 billion
- Net interest income increased nearly 50% to ₦5.08 billion
Despite recording impairment charges of ₦15.2 million, the bank’s net operating income still grew strongly to ₦6.1 billion, reflecting improved profitability and operational momentum.
