Infinity Trust Mortgage Bank approves capital raise for Nigeria expansion

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Infinity Trust capital raise

Highlights

Infinity Trust Mortgage Bank shareholders approve raising up to N50 billion via rights issue, private placement, or public offer, with terms to be decided by directors and regulatory authorities.
The meeting authorises conversion of 600 million preference shares worth N600 million into ordinary shares and increases issued share capital to support fundraising and revised capital structure.
Shareholders approve adding two non-executive directors, Hajia Aisha Ibrahim Rufai and George Leonard Adah Onazi, to reinforce board strength as the bank pursues growth and expanded funding.

Capital plan and share structure changes

As reported by Businessday, shareholders approved the fundraising plan at the bank’s Extraordinary General Meeting held on Tuesday in Abuja, authorising directors to raise up to N50 billion through a rights issue, private placement, public offer, or a combination of the three. The bank says the terms, pricing and structure will be determined by the directors, subject to approvals from the relevant regulatory authorities.

The meeting also approves the issuance and allotment of additional ordinary shares to support the capital raise, as well as an increase in issued share capital to reflect the revised capital structure. Shareholders further approve amendments to the bank’s Memorandum and Articles of Association to align with the changes.

In a related step, the bank approves the conversion of 600 million preference shares, valued at N600 million, into ordinary shares. The board says the conversion ratio and price will be determined by the directors, again subject to regulatory clearance.

Board reinforcement and growth implications

The resolutions give the bank the corporate framework to pursue additional funding for operations and strategic growth, although no completion timeline is specified at the meeting. Shareholders also authorise the directors and company secretary to execute documents and engage advisers needed to implement the resolutions under applicable laws.

The EGM also considers two nominees for non-executive director roles, Hajia Aisha Ibrahim Rufai and George Leonard Adah Onazi, for renewable four-year terms subject to shareholder ratification and Central Bank of Nigeria approval. Rufai currently serves as executive director for Commercial and Industrial Development at the North Central Development Commission, while Onazi spent more than 33 years at the Central Bank of Nigeria and retired as a director in 2018.

Nkechi May Bibilari, chairman of the board, presides over the electronic meeting, which is conducted in line with the Business Facilitation (Miscellaneous Provisions) Act 2023. The combined measures are intended to reinforce the lender’s board and capital base as Nigeria’s mortgage banking sector faces continued pressure to expand funding capacity and support future business growth.

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