One of Nigeria’s real estate lenders, Abbey Mortgage Bank Plc, has secured approval from the Central Bank of Nigeria (CBN) to convert into a regional commercial bank, marking a shift from its current status as a primary mortgage institution.
The development was disclosed in a regulatory filing, signalling a strategic change that will see the bank expand into broader commercial banking activities beyond housing finance.
The conversion is expected to take effect later this year, subject to the completion of regulatory and operational requirements, including system upgrades and restructuring.
The move comes amid ongoing changes in Nigeria’s banking sector, where institutions are seeking to strengthen capital bases and diversify operations in response to evolving regulatory and market conditions.
At its recent Annual General Meeting (AGM), its board gave approval to raise N100 billion in additional capital aimed at helping the company achieve its next growth phase.
Shareholders authorised the lender to raise the funds through various funding instruments, including shares, bonds, commercial papers, loans, and other securities, subject to regulatory approvals.
The directors were also allowed to raise fresh equity capital of up to N65.547 billion by way of private placement of 26,562,647,265 ordinary shares of 50 Kobo each at N2.43 per share, subject to regulatory approvals.
In addition, shareholders approved the increase in the company’s issued share capital from N5,076,923,077 divided into 10,153,846,154 of 50 Kobo each to N18,358,246,709.50 by the creation of up to 26,562,647,265 ordinary shares of 50 Kobo each, such new shares to rank pari passu in all respects with the existing ordinary shares in the capital of the bank.
