Access Holdings Plc, one of Africa’s leading financial groups, has unveiled plans to establish a Capital Raising Programme of up to $1.5 billion or its equivalent.
The plans were disclosed in the Group’s Notice of the 2nd Annual General Meeting scheduled to be held on April 19, 2024.
The programme aims to enhance the Group’s financial strength through the issuance of various financial instruments.
BAR & BENCH WATCH reports that the Central Bank of Nigeria had, during the week, raised the capital base for commercial banks with international authorization to N500bn and national banks to N200bn.
The CBN’s move mandates substantial increases in the minimum capital base for banks, varying by the scope of their operations.
The latest policy directive specifies that commercial banks with international authorization are now required to shore up their capital base to N500bn.
She added that national authorization commercial banks need to meet an N200bn threshold, while those with regional authorisation are expected to achieve an N50bn capital floor.
In a bid to tighten the financial fabric, the CBN has not overlooked merchant banks, which are now subject to N50bn minimum capital requirement
The Access Bank’s move to raise fresh $1.5billion or its equivalents through capital raising programmes had coincided with the fresh directive of the CBN on Banks’ recapitalization.
The programmes will include ordinary shares, preference shares, Alternative Tier 1 capital, convertible and/or non-convertible debt, bonds, or other capital and/or funding instruments.
The programme 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 up to N365 billion specifically via a Rights Issue of ordinary shares.
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.
