Abbey Mortgage Bank has announced plans to raise at least N100 billion through a mix of financial instruments as part of a strategic push to transition from a primary mortgage bank to a regional commercial bank.

In January 2025, shareholders approved the bank’s proposal to convert its license from mortgage banking to regional commercial banking.

CBN rules on commercial banking operations

In March 2024, the CBN requirement pegs the minimum capital base for commercial banks with international authorisation at N500 billion.

Conversely, the requirement for commercial banks with national authorisation is N200 billion, while the new requirement for those with regional authorisation is N50 billion.

Merchant Banks also have a minimum capital requirement of N50 billion, while National and Regional Non-Interest Banks have capital requirements of N20 billion and N10 billion, respectively.

Abbey Mortgage Bank transitions to a commercial bank

At the bank’s Board of Directors during its 33rd Annual General Meeting held on Wednesday, May 28, shareholders agreed that the capital raise will support the bank’s transition and align it with the CBN’s new minimum capital requirement of N50 billion for regional commercial banks.

A statement published by NGX and signed by the Company's Secretary, Geoff Amaghereonu Abbey’s funding strategy involves raising capital through the issuance of shares via rights issues and public offers, along with a range of financial instruments including global depository receipts, commercial papers, loans, convertible and non-convertible securities, medium-term notes, and bonds.

The bank said:

"The funds may be raised in tranches, series, or proportions with terms and interest rates determined by the Board, subject to regulatory approvals."

As part of the process, the Board has been authorised to appoint professional advisers, enter into agreements, execute required documents, and undertake all necessary steps, including listing shares on the Nigerian Exchange Group Limited.

The bank said it will leverage book-building and other financial instruments to optimise capital acquisition while complying with all regulatory directives.

The transition is expected to strengthen Abbey’s financial position and broaden its service offerings, with industry analysts saying the shift will enhance financial inclusion and banking access in underserved areas.