LAGOS, Nigeria (VOICE OF NAIJA)-Access Holdings Plc yesterday unveiled plans to raise $1.5 billion in additional capital to boost its capital base.
This is coming after the Central Bank of Nigeria (CBN) announced a new policy requiring banks to increase their minimum capital
The apex bank directed that commercial banks with international operations move their capital base from N50 billion to N500 billion; commercial banks with national operations, raise their capital base from N25 billion to N200 billion while regional banks raise their capital base from N10 billion to N50 billion.
Access Holdings, in a statement, said its planned capital raising programme aims to enhance the Group’s financial strength through the issuance of various financial instruments, including ordinary shares, preference shares, Alternative Tier 1 capital, convertible and/or non-convertible debt, bonds, or other capital and/or funding instruments.
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This, the Group said, may be executed through a variety of methods including public offerings, private placements, rights issues, book-building processes, or a combination thereof.
The specifics regarding the tranches, series, proportions, dates, pricing, tenor, and other terms and conditions that may be associated, will be determined by the Board of Directors, contingent upon securing the necessary regulatory approvals.
Drawing from the Programme, the Group expects to raise N365,000,000 specifically via a Rights Issue of ordinary shares.
According to the Group, the proceeds of the proposed Rights Issue would be used to support ongoing working capital needs including organic growth funding for its banking and other non-banking subsidiaries.
“The plans for the Programme were disclosed in the Group’s Notice of the 2nd Annual General Meeting held on April 19, 2024, which was published on the Nigerian Exchange portal on March 27, 2024″, the statement added.