Nigeria’s Tier-One lender, Access Corporation Plc, will launch a bid to raise about N351 billion fresh capital through its existing shareholders on July 8, 2024.
The signing ceremony for the Rights Issue which was held at the corporate head office of the leading financial institution in Nigeria had in attendance all parties to the deal.
The Rights Issue is a step towards meeting the N500 billion new capital base mandated for top commercial banks in the country.
According to a circular issued by the Central Bank of Nigeria in April 2024, the deadline for recapitalisation is March 31, 2026.
Access Bank is offering 17,772,612,811 ordinary shares of 50k each at N19.75 per share on the basis of one new ordinary share for every two ordinary shares held by shareholders as at June 7, 2024.
The Chairman, Access Corporation Plc, Aigboje Aig- Imokhuede, disclosed that the fresh capital expected from the Rights Issue will be used to expand the businesses of the Access Group in Africa and outside Africa.
This extends to its banking and non -banking business such as pension and other subsidiaries.
“Today we are here for another significant event in the life of the Access Holdings ecosystem. It is the second rights issue since we started this business in 2002,” he said.
Speaking on the timing of the recapitalization exercise, Aig-Imoukhuede argued that the largest bank in Nigeria took the step to recapitalise before the CBN announced the recapitalisation.
He expressed confidence that the Rights Issue will be successful going by the previous experience.
“All the shareholders of the group were carried along in this process. Shareholders have been with us throughout this journey.
“Recent performance of our group is remarkable. We achieved 300% growth in our financial performance in 2023, showing our ability to navigate the harsh economic situation of the country. Therefore, this offer represents a shared prosperity for our shareholders,” he added.
The Chief Executive Officer, Access Bank Limited, Roosevelt Ogbonna, reiterated the confidence of his Chairman that the Rights Issue will be fully taken by shareholders.
“Access Bank is the largest bank in our market, top 10 in Africa. First African bank in Hong Kong among others,” he said.
He disclosed that the Holding company has obtained all regulatory approvals to proceed on the capital raise exercise on July 8.