The Chief Executive Officer of Standard Bank Group has revealed intentions to enhance its ownership in the Nigerian entity, Stanbic IBTC Holdings.

Sim Tshabalala made this announcement while discussing plans to augment the group's investment in Standard Bank de Angola. However, he did not specify the amount the bank is prepared to invest in the Nigerian institution.

He remarked, "In Nigeria, we are again looking to increase our shareholding in the business. It’s a great business."

Standard Bank Group currently possesses a 67.55% stake in Stanbic IBTC Holdings through Stanbic Africa Holdings. Presently, Stanbic IBTC Holdings boasts a total paid-up share capital of N109.3 billion, which includes Stanbic IBTC Bank’s paid-up share capital of N62.469 billion.

Stanbic IBTC Bank, holding a national banking license, must raise a minimum of N137.35 billion to comply with the N200 billion capital requirement by March 2026. In its recapitalization strategy, the group has announced plans to generate N550 billion through various methods, including a N150 billion rights issue program.

During its annual general meeting on May 16, 2024, one of the resolutions involved the creation of 3.54 billion shares for sale in a rights issue.

The capital-raising initiative also encompasses a N400 billion debt issuance program, which may take the form of either a bond issuance or a private placement.

Given that Standard Bank Group holds a 67.55% interest in Stanbic IBTC Holdings, the majority of the new capital from any rights issue will likely be contributed by Standard Bank Group.

In the event of an undersubscription, it is probable that Standard Bank Group will increase its ownership by acquiring the unallocated shares.

Currently, Stanbic IBTC Holdings maintains an account balance of N23.07 billion with the Standard Bank of South Africa, along with foreign currency placements totaling approximately N1.1 billion.

Stanbic IBTC Bank has a liability amounting to $267 million with the Standard Bank Isle of Man.

As indicated in the group's financial report for 2023, various dollar-denominated loans were secured from the Standard Bank Isle of Man, with interest rates linked to the Secured Overnight Financing Rate (SOFR).

Furthermore, Standard Bank Group intends to enhance its ownership in Standard Bank de Angola from the present 51%.

Currently, the Angolan government holds the remaining 49% stake in Standard Bank de Angola, with plans to divest up to 34% of its shares.

Additionally, Standard Bank Group possesses the option to acquire an extra 24% in the Angolan bank, potentially increasing its ownership to 65%.

The group's CEO stated that the bank is committed to thoroughly considering this opportunity, remarking, “We are going through a process where we are putting our best foot forward and therefore would increase our shareholding if all goes well.”