Securities and Exchange Commission (SEC) has asked the Access Bank Plc to progress with its plans to raise N52.6 billion in a share sale.
The bank is aiming at growing and making stronger its cash coffers.
Access Bank Plc, with operations in eight other countries, will be selling shares to existing shareholders by way of Rights Issue of 7,627,639,636 shares of 50 kobo each at N6.90. Shareholders of the Bank had approved the Board of Directors’ proposal to raise additional equity at an Extra Ordinary Meeting (EGM) held in Lagos on October 13, 2014.
The capital raising falls in line with Access Bank’s five-year corporate strategy plan to be one of the top three banks in the country and the “world’s most respected African bank”. This will be anchored on four critical pillars – capital, human capital, governance and risk management. It will also enable the Bank to be more competitive and meet the funding needs of its blue chip customers that meet its credit risk criteria.
Group Managing Director/Chief Executive Officer, Access Bank Plc, Herbert Wigwe said the proceeds from the offer will be used to upgrade the Bank’s information technology platforms to enable it provide better services, upgrade the Bank’s branch networks and further improve the working environment.
“The funds raised would provide Access Bank with additional capacity to further consolidate its leading corporate banking business as well as additional capital headroom to support our increasing market share in the SME and retail segments’” Wigwe said.
He noted that despite the challenging conditions in the nation’s banking sector with regulatory changes and increased competition, Access Bank has continued to sharpen its execution skills, thereby ensuring a solid platform to build on.
Access Bank Plc launched a highly successful $400 million Eurobond in June 2014. The transaction follows the bank’s highly successful $350 million five-year senior debt issued in 2012. Access Bank is rated B (Fitch) and A+ Agusto & Co.