Fidelity Bank Crosses N500bn Capital Threshold After N259bn Private Placement

Fidelity Bank Plc has surpassed the N500bn regulatory capital threshold following the successful completion of a N259bn private placement of ordinary shares, marking a major milestone in its ongoing recapitalisation drive.

The bank disclosed that the private placement, conducted with the approval of the Central Bank of Nigeria (CBN) and the Securities and Exchange Commission (SEC), was opened and closed on December 31, 2025.

Proceeds from the exercise lifted Fidelity Bank’s eligible capital from N305.5bn to N564.5bn, subject to final regulatory approvals.

The latest capital raise positions the lender comfortably above the new minimum capital requirement of N500bn for commercial banks with international authorisation, as stipulated by the apex bank under its banking sector recapitalisation programme.

According to the bank, the private placement was carried out pursuant to the mandate granted by shareholders at its Extraordinary General Meeting held on February 6, 2025.

At the meeting, shareholders authorised the board to issue up to 20 billion ordinary shares through a private placement as part of measures to strengthen the bank’s capital base and enhance its capacity to support economic growth.

The N259bn raised through the private placement builds on earlier capital-raising efforts by the bank.

In 2024, Fidelity Bank successfully raised N175.85bn via a combination of a public offer and rights issue, which had increased its eligible capital to N305.5bn at the time.

That exercise left a capital shortfall of N194.5bn relative to the new regulatory benchmark, a gap now fully covered by the latest transaction.

Market analysts say the successful completion of the private placement underscores strong investor confidence in the bank’s growth strategy, governance framework and long-term fundamentals, even amid tightening regulatory standards and evolving macroeconomic conditions.

Fidelity Bank noted that the strengthened capital position will enhance its balance sheet resilience, support business expansion, and enable it to play a more robust role in financing key sectors of the Nigerian economy, in line with regulatory expectations.

The bank added that it remains focused on value creation for shareholders, prudent risk management and sustained profitability as it navigates the post-recapitalisation phase of the banking sector.