Coronation Merchant Bank Completes Recapitalisation,Meets CBN N50bn Capital Requirement

Oriarehu Bonny

Coronation Merchant Bank has announced that it has completed its recapitalisation programme, increasing its paid-up capital to N50,257,767,438 and strengthening its balance sheet for greater operational resilience and efficiency.

The capital raise, it said in a statement, was executed through a combined rights issue and private placement, “which together generated over N32,093,878,138 in new equity capital. The resulting capital base satisfies the N50 billion minimum capital requirement for merchant banks prescribed by the Central Bank of Nigeria. The exercise received strong support from existing shareholders and strategic investors, positioning the Bank to advance the next phase of growth across its key strategic business segments.”

Commenting on the development, the Chairman of Coronation Merchant Bank, Mr. Babatunde Folawiyo, stated: “The successful completion of this capital raise reflects the strong confidence our shareholders have in the Bank’s strategy and long-term vision. With a stronger capital base, we are well-positioned to expand our role in supporting Nigeria’s financial markets.”

Also commenting, the Managing Director/Chief Executive Officer of Coronation Merchant Bank, Mr. Paul Abiagam, said: “This recapitalisation significantly enhances our capacity to deliver greater value to our clients and stakeholders. Furthermore, it positions the Bank to deliver improved performance, deepen innovation, and expand across our chosen focus markets.”

With a stronger capital base, the bank said it is well positioned to expand its offerings across its lending, investment banking, and global markets and treasury segments, whilst deepening relationships with Nigeria’s leading corporates and financial institutions.

“This milestone reflects the strength of the bank’s franchise and the continued confidence of its shareholders and investors, reinforcing Coronation Merchant Bank’s capacity to support its clients at greater scale and with enhanced capabilities,” it added.