Infinity Trust Mortgage Bank to Raise Additional N50bn

Kayode Tokede

Infinity Trust Mortgage Bank (ITMB) Plc, yesterday announced plans to raise additional N50billion via private placement on the backdrop of expanding to becoming a digital commercial bank.

Speaking to capital market community at the “Facts Behind the Presentations”, in Lagos, the Chairman, ITMB, Mrs. Okwa Ene Iyana stated that capital raising exercise is the management strategic move to capitalise on new opportunities, expand its reach as a catalyst for financial inclusiveness and to further entrench its position as a leader in the sector. 

She expressed that the move is a demonstration of a resounding vote of confidence by shareholders on the bank’s potential, people and prospects.

“As we navigate through the complexities of its dynamic industry, we remain steadfast in our mission to provide innovative, customer-centred solutions, to fostering sustainable growth and creating long term value for all our stakeholders.

“Our unwavering commitment to excellence, integrity, and transparency has been the compass of our success to date and we will continue to uphold these values.”

She, however, added that since IITMB was listed on NGX in 2013, the management has maintained dividend payout to shareholders in the fifth month of every year.

“It will interest you to note that this track record began before ITMB was listed on NG, it has become a culture that we hold very dear, and we are committed, to ensuring that this will continue,” she said.

Commenting on the main purpose of the capital raising exercise the Acting Managing Director/Chief Executive Officer, ITMB, Mrs. Ngozi Chukwu said the aim is to transform to a digital commercial bank with focus on providing finance to essential sectors and to deal with other challenges faced by Micro, Small and Medium-sized Enterprises (MSMEs) and unbanked individuals in general.

She pointed to 2022 sectorial allocation of bank credit of Central Bank of Nigeria (CBN) research that showed that there is a large pool of MSMEs (over 39million) with limited access to finance to grow their business, adding that only 0.3per cent of commercial banking credit is availed to these group of business owners and over 75per cent of MSMEs rely on internal capital to grow which is considered largely inadequate and in efficient.

On that research, she said, “ITMB will leverage on technology and digital tools to reach the target customers in an efficient manner that would lead to lower interest rates and higher returns through volume of transactions.  So, technology here is very key for us.

“Our target customers will be MSMEs, unserved and underserved by microfinance bank and commercial banks.”

She highlighted six strategic building blocks that include: driving financial inclusion, deep industry knowledge, data and technology, product innovation/customisation, partnerships and cost efficiencies.

On driving financial inclusion, she explained that the company tends to provide financial services to underserved and underbanked individuals to align with CBN’s strategic goals of increasing the financial inclusion rate to 80per cent.

She explained further the ITMB intends to create digital banking, transportation/logistics, asset management, healthcare & pharmaceutical, real estate/green finance, agriculture, foreign exchange, women and youth empowerment and real sector financing with sources of value creation amid raising additional N50billion capital.   

She said that the company’s projection N2.46 per share Dividend Per Share (DPS) by 2028 from N0.42 in 2024 financial year.

Speaking earlier, the Chief Executive Offer, Nigerian Exchange Limited, Mr. Jude Chiemeka stated that despite the prevailing economic challenges the Exchange acknowledged and commended the effort of Infinity Trust Board and management in enhancing its operations, promoting business continuity and restoring investor confidence.

“Their commitment and dedication to these goals reflects their resilience and adaptability, and these are essential in today’s market environment,” he said.

Chiemeka expressed further that the Exchange is committed to supporting infrastructure funding through targeted financial instruments such as Infrastructure Bonds and Infrastructure Funds, stating that these tools are crucial in bridging Nigeria’s funding gap and driving sustainable