LAGOS, Nigeria (VOICE OF NAIJA)-One of Nigeria’s largest and leading financial institutions, Access Holdings, has assured shareholders of its commitment in adopting full digital technology deployment to raise N365bn right issue set by the Central Bank of Nigeria (CBN).
In a notice filed with the Nigerian Exchange Limited (NGX), the bank is seeking to use the capital raise to leverage on seizing emerging opportunities in the financial sector, amongst others.
The institution also disclosed that it will raise up to $1.5bn through equity, quasi-equity, and debt issuances.
During the Annual General Meeting of the Holdco, the chairman of Access Holdings, Aigboje Aig-Imoukhuede, disclosed that the bank leverage on digital technology in raising the combined capital base is as a result of its evolving growth.
Aig-Imoukhuede said, “If you remember the 2004 capital raising, we went around Nigeria. It led to the democratisation of our capital market, others followed suit. The number of shareholders of banks and the capital market increased as a result of that effort.
“This time around, we have digital technology that we are going to deploy fully. There have been public offers that have leveraged digital technology but using Access Bank’s capacity, the NGX’s digital capacity, we are going to do some interesting things. This rights issue, we have shareholders and each of them would be able to make that investment decision just by touching their phones. That way, the issue of dilution and concerns that they may have about participation would be dealt with.”
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While addressing the shareholders, the pioneer managing director who returned to the bank after the death of Herbert Wigwe, recalled how the bank raised funds in 2004 when he was the CEO and assured praised them for their support.
He said, “We’re moving on to the rights issue resolution. At this junction, I think we’ll take one minute to crave your indulgence as I appreciate you all for the support you have given our predecessor company, Access Bank, and of course now Access Holdings.
“We have sought to raise capital. The amount that we mention today is high and significant and the capital-raising effort that we are pursuing is a significant step into the future. I would like to remind shareholders that between 2004 and 2007, our team when I was CEO raised $2bn of common equity capital. Therefore, come 2024, Access Bank is much older, much wiser, much stronger, larger and significantly respected by the capital market, really raising over N300bn is not much of a challenge.”
He also encouraged all level of shareholders to take up their rights, saying, “We are interested in shareholders; large, small continuing with us on our journey. We have always had a unique relationship with the capital market locally and internationally. They have always supported us when we come up with good reasons and the performance that would be delivered after such capital raising efforts, so we signalled to the market first that we would be doing a rights issue, what does that mean? We have large institutional shareholders and others but we believe that we must carry everybody along. They have been with us thus far and this is not the time to say that we are going to raise money and because a few can do it, no, everybody is going to participate in this capital-raising exercise.”
The Group Chief Executive Officer of Access Holdings, Bolaji Agbede, in her remarks expressed confidence in meeting the regulatory requirements of the apex bank and also explained how the funds will be channelled.
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She said, “In terms of the proceeds from the rights issue which we are hoping to get about N365bn, we will be giving the bulk of it to the banking group to enable them to meet the CBN’s capital requirement. Part of the things that they are using it for is as working capital requirements for investment in African subsidiaries as some of the growth in the international subsidiaries that they have.
“If you look at all the headwinds that are coming along, it is important that you have a robust capital plan and this is one of those things that would help them. The other thing that we will also be doing is that some of the amount, not as much as the banking group of course would be going into the non-banking subsidiaries as well.”