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Globus Bank and Zenith Bank Aim to Meet Capital Requirements Through Public Offerings

2024-08-10 08:15:41.538000

Globus Bank, a Nigerian financial institution, has set its sights on becoming the most preferred financial service provider in the country. Since its inception in November 2019, the bank has experienced significant growth and profitability. Despite the challenges posed by the COVID-19 pandemic, Globus Bank focused on resilient sectors such as food, packaging, telecommunications, and beverage. The bank's strategic vision centers around delivering an exceptional customer experience, prioritizing people, technology, and service. Globus Bank has five core values: creativity, excellence, respect, reliability, and simplicity. As of December 2023, the bank's total assets and contingencies have reached over N1 trillion, with shareholders' funds at N82.6 billion [adec6987].

To meet the new minimum capital requirement, Globus Bank plans to raise capital organically through rights and private placement, with an initial public offering (IPO) scheduled for 2026. The bank sees fintech companies as enablers rather than competitors and collaborates with them. Globus Bank is committed to serving small and medium-sized enterprises (SMEs) and has maintained a zero non-performing loan record. The bank places a strong emphasis on risk management and has invested in IT safeguards to protect against cybercrime. Additionally, the bank aims to cater to the Gen Z population and align its systems with their aspirations. Despite the challenges in the Nigerian economy, Globus Bank remains optimistic and believes that stability and attracting foreign investments will drive growth. The bank plans to enhance its market visibility leading up to its IPO [adec6987].

Zenith Bank Plc, another Nigerian bank, is also taking steps to meet the Central Bank of Nigeria's new minimum capital requirement. The bank is conducting a public offering to raise about N290 billion. The rights issue offers 5,232,748,964 ordinary shares at N36.00 per share, while the Offer for Subscription presents 2,767,251,036 ordinary shares at N36.50 per share. Zenith Bank has a history of consistent dividend payouts and is currently the highest dividend-paying bank in Nigeria. The proceeds from the capital raise will be used to expand banking operations, invest in technology infrastructure, and support working capital. Zenith Bank's audited results for 2023 showed triple-digit growth in gross earnings, profit before tax, and profit after tax. The bank offers a diverse portfolio of investment options and has been recognized with numerous awards for its performance and corporate governance [8e044934].

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