Nigeria's Fidelity Bank to sell shares to meet new capital requirement

Source: Market Screener

ABUJA (Reuters) - Nigeria's Fidelity Bank said on Thursday it would raise a total of up to 127.1 billion naira ($87.66 million) via a rights issue and a public share offering to comply with a new minimum capital requirement for local lenders introduced by the central bank in March.

The central bank on Tuesday said local lenders have started submitting plans to meet its new minimum capital requirements which will strengthen the financial system and support economic growth.

Commercial banks with international authorization must have at least 500 billion naira ($344.83 million) in capital under the new rule. More than 20 lenders in Nigeria need to raise extra capital within two years to meet the new threshold.

(Reporting by Chijioke Ohuocha; Editing by Tomasz Janowski)