The Nigerian capital market regulatory agency, the Securities and Exchange Commission (SEC), has given approval to Access Bank Plc to proceed with plans to raise 52.6 billion naira (about US$ 3.1 million) in share sales.
A statement from the bank Tuesday, made available to PANA here, noted that the bank will be sell shares to existing shareholders by way of Rights Issue of 7,627,639,636 shares of 50 kobo each at N6.90.
“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,” the Chief Executive Officer of the bank, Herbert Wigwe, was quoted as saying in the statement.
In addition, the funds raised would 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.
At an Extra Ordinary General Meeting (EGM) of the bank in 2014, shareholders approved the Board of Directors proposal to raise additional equity.
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.”
The fund 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.
Last June, the bank last launched a highly successful US$400 million Eurobond.
The transaction follows the bank’s highly-successful US$350 million five-year senior debt issued in 2012.
With branches in eight other countries, Access bank is rated B (Fitch) and A Agusto