[Nigeria] Securities and Exchange Commission Approves N52.6b Access Banks Rights Issue
Access Bank Plc has secured approval of the Securities and Exchange Commission (SEC) to proceed with plans to raise N52.6 billion in a share sale as it pursues expansion and a stronger cash reserve.
Access Bank Plc, with operations in eight other countries, will be selling shares to existing share holders 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 Extraordinary General 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.
Acceptance List for the Rights Issue opened on Monday, 26 January 2015 and will close: Wednesday, 4 March 2015. The Rights being offered are tradable on the floor of The Nigerian Stock Exchange for the duration of the Issue.
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.