Victor Ezeja
Infinity Trust Mortgage Bank (ITMB) has announced plans to raise an additional N50 billion in capital and also upgrade to a regional commercial bank.
The bank’s management made this known while speaking at the “Facts Behind the Offer Presentations” held at Nigerian Exchange headquarters in Lagos on Thursday, 22nd August 2024.
Join our WhatsApp ChannelSpeaking at the event, Chairman of ITMB, Mrs Okwa Ene Iyana, said the N50 billion capital raise will be through private placement.
She explained that the bank management’s strategic action to raise capital is aimed at exploiting new opportunities, broadening its influence as a driving force for financial inclusion, and fortifying its leadership in the industry.
Mrs Iyana revealed that since Infinity Trust Mortgage Bank was listed on the floor of the Nigerian Exchange in 2013, the bank has till date not missed dividend payments to shareholders.
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She said: “We are pleased to announce to the market our pipeline initiative to raise an additional N50 billion through private placement from the investment communities, from private individuals and institutional investors. This is in our strategic move to capitalize on new opportunities to expand our reach as a catalyst for financial inclusiveness and to further entrench our position as a leader in the sector.”
She added that the move is a demonstration of vote of confidence in the bank’s potential.
“As we navigate the complexities of this dynamic industry, we remain steadfast in our mission to provide innovative, customer-centered solutions, fostering sustainable growth, and creating long-term value for all our stakeholders,” Mrs Iyana added.
She said the bank remains committed to upholding its core values of excellence, integrity, and transparency which have been the fulcrum of its success since inception.
In a detailed presentation, ITMB Acting CEO, Mrs Ngozi Chukwu, highlighted achievements of the bank including recording 150 percent dividend growth in 2023, financing real estate projects in different parts of the country among other sectors.
Why ITMB Wants to Raise N50bn
Mrs Chukwu explained that the bank is embarking on the capital-raise exercise mainly to enable it transform to digital commercial bank with focus on providing finance to essential sectors and deal with other challenges faced by MSMEs and unbanked individuals in general.
“We did a market research, and this showed us that there’s a lot full of MSMEs, over 39 million, with limited access to finance to grow their business. So we see an opportunity here, and we would like to take advantage of this opportunity,” the ITMB acting CEO stated.
She further stated that they also realised that only 0.3 per cent commercial banking credit is availed to that group of business owners (MSMEs) in Nigeria. She stressed that only 0.3 per cent is too small for a sector that drives economic growth.
“Over 75% of SMEs rely on internal capital to grow, which is considered largely inadequate and, of course, inefficient,” she added.
Mrs Chukwu revealed that the bank’s team would leverage technology and digital tools to reach the target customers “in an efficient manner that will lead to lower interest rates higher returns through volume of transactions. So, technology, here is very key for us.”
“Our target customers, like we have said earlier, would be the MSMEs, the unserved and the underserved by microfinance banks and commercial banks,’” she explained.
She further stated that there are six main points under which the bank will anchor its operations on which include to drive financial inclusion, data and technology partnerships, deep industry knowledge, product innovation and customization and cost efficiency.
She said the bank would provide financial services to underserved and unbanked individuals in line with CBN’s strategic goals of increasing financial inclusion by 80 per cent.
Earlier, in his address, Mr. Jude Chiemeka, the Chief Executive Officer of Nigerian Exchange Limited, said the Exchange recognised and applauded the work of the Infinity Trust Board and management in improving its operations, fostering business continuity, and regaining investor confidence despite the current economic challenges.
