Abbey Mortgage Bank Plans Regional Banking Leap

Abbey Mortgage Bank is gearing up for a major transformation, as it plans to raise at least ₦100 billion to support its conversion from a primary mortgage bank into a regional commercial bank. The move is designed to meet the Central Bank of Nigeria’s (CBN) fresh capital threshold of ₦50 billion for regional banks, and strengthen the bank’s footprint in Nigeria’s increasingly competitive financial sector.

Following shareholder approval in January, the bank’s Board greenlit the capital raise during its 33rd Annual General Meeting (AGM) held on Wednesday. The funding will be secured through a mix of financial tools, including rights issues, public offerings, commercial papers, and both convertible and non-convertible securities. A statement issued by the Company Secretary, Geoff Amaghereonu, confirmed this strategic direction.

“This funding strategy will support our long-term vision while aligning with regulatory expectations,” the statement read.

Strategic Funding to Fuel Financial Expansion

The bank intends to raise the funds in multiple phases and may use instruments like global depository receipts, loans, and medium-term notes. Each tranche will be carefully designed with varying terms and interest rates, as determined by the Board. Importantly, all steps remain subject to approvals from Nigeria’s financial regulators.

To ensure a smooth rollout, the Board has been authorised to appoint professional advisers, secure approvals, and handle share listings on the Nigerian Exchange Group Limited. Book-building processes will also be used to optimise capital acquisition, making the transition both structured and market-responsive.

Financial analysts say the transition to regional commercial banking could make Abbey a key player in enhancing financial inclusion. As the banking industry braces for increased regulation and competition, Abbey’s move is being seen as both timely and forward-thinking.