FOREIGN EQUITY INVESTMENT IN ZENITH BANK TOTAL $165 MILLION (N20.79 BILLION)

Some world class foreign investment firms including Emerging Markets Investors U.S.A have invested the sum of $165 million in Zenith Bank Plc, reliable sources have revealed.

These institutions, the sources said, have had long-standing interest in Zenith Bank. This is believed to be an expression of the highest level of optimism on the bank’s future both in the short and long term as  well as a confirmation of the bank’s position as an attractive investment option in Nigeria post-consolidation.

The decision by these reputable investing institutions is seen in certain quarters as an eloquent demonstration of confidence in the time-tested management of Zenith bank, its leading quest for innovation in service and technology as well as its professional human capital endowment, which has resulted in strong customer satisfaction and enhanced shareholders wealth.

The Zenith management team has been singled out for praise by Agusto & Co, Nigeria’s foremost rating agency, which for eight years consecutively, (since 1999) has described the bank’s management, “as stable, qualified and experienced.”

Investors’ continued interest in the shares of the bank has remained strong with high demands over the past few months at the Nigerian Stock Exchange pushing the unit price to over the N42 mark, making it the highest priced banking stock in the market.

Observers said that the capital injection by the foreign equity investors will allow Zenith Bank compete effectively on the global stage.

Analysts have long believed that the Zenith stock holds a hidden treasure that only the perceptive investors are able to discover.

Those who spoke to our correspondent said, for instance, that these latest investments in the bank represent a strong endorsement of the Zenith brand and an acceptance of the bank’s high corporate governance standards and regulatory compliance levels.

Just last week Zenith Bank Plc, once again, raised the bar of competition with the opening for business of its wholly owned United Kingdom (UK) subsidiary, Zenith Bank UK following a rigorous approval process by the Financial Services Authority (FSA) in the UK considered as the strictest financial regulatory authority in the world.

The FSA gave Zenith Bank the nod to open for business having been impressed by the professionalism and strength of the bank’s application for a banking license and the remittance of the requisite paid up capital for new banks.

Zenith Bank, one of Nigeria’s biggest financial institutions with interests in pension, investment banking and insurance already has a strong strategic alliance with respected United States financial services group, J.P Morgan.

No doubt, such foreign endorsements of the Zenith brand would be rightly interpreted as a strategic move to deepen the bank’s base, grow the brand and ultimately lead to more reward in terms of dividend to its several investors.

Zenith Bank is the second most capitalised company on the Nigerian Stock Exchange with a market capitalisation of over N378 billion.

Recently Zenith Bank was adjudged the most customer-focused bank in Nigeria from a survey by foremost consulting firm KPMG which targeted corporate customers of banks including companies in a variety of sectors found that they were most satisfied with the services rendered by Zenith Bank.

(Posted 16th April, 2007)