Standard Bank Group to raise 67.55% stake in Nigeria’s Stanbic IBTC Holdings

THE Standard Bank Group has announced plans to increase its stake in the Nigerian bank, Stanbic IBTC Holdings.

Its Chief Executive Officer, Sim Tshabalala, noted this while speaking about plans to increase the group’s stake in Standard Bank de Angola. However, he didn’t clarify how much the bank was willing to invest in the Nigerian bank.

He said: “In Nigeria, we are again wanting to increase our shareholding in the business. It is a great business.”

Standard Bank Group holds a 67.55 percent shareholding in Stanbic IBTC Holdings through Stanbic Africa Holdings.

Currently, Stanbic IBTC Holdings has a total paid-up share capital of N109.3 billion. However, this is inclusive of Stanbic IBTC Bank’s paid-up share capital of N62.469 billion.

Stanbic IBTC Bank holds a national banking license, thus need to raise at least N137.35 billion to meet the N200 billion minimum capital requirement by March 2026.

In its own recapitalisation efforts, the group has announced plans to raise N550 billion through different means, including a N150 billion rights issue programme. During its Annual General Meeting held on May 16, part of the resolutions included the creation of 3.54 billion shares to be sold in a rights issue.

The capital raising plan also includes a N400 billion debt issuance programme, which could be either a bond issuance or a private placement.

With Standard Bank Group holding a 67.55 percent stake in Stanbic IBTC Holdings, industry watchers believe that any rights issue programme will see most of the new capital coming in from Standard Bank Group.

However, in the case of an undersubscription, the Standard Bank Group is likely to increase its shareholding by mopping up the unused shares.

Nigeria’s Stanbic IBTC Holdings currently has an account balance of N23.07 billion in the Standard Bank of South Africa, as well as foreign currency placements of about N1.1 billion.

The bank, Stanbic IBTC Bank, also has a $267 million liability with the Standard Bank Isle of Man. According to the group’s financial statement for 2023, different dollar-denominated loans were obtained from the Standard Bank Isle of Man at a floating rate tied to the Secured Overnight Financing Rate (SOFR).

Standard Bank Group is also planning to increase its stake in Standard Bank de Angola from the current 51 percent. It is noted that the Angolan government currently owns the remaining 49 percent stake in Standard Bank de Angola. However, the government aims to sell off up to 34 percent stake.

It is also noted that the Standard Bank Group has a right to buy an additional 24 percent in the Angolan bank, thus taking its shareholding to 65 percent. According to the group’s CEO, the bank will fully explore this option.

He noted: “We are going through a process where we are putting our best foot forward and therefore would increase our shareholding if all goes well.”

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