29th March, 2024
By Rukayat Adeyemi
Access Holdings Plc has unveiled plans to establish a capital raising programme of up to $1.5 billion or its equivalent via rights issue of ordinary shares.
The announcement came less than 24 hours after the Central Bank of Nigeria (CBN) announce increase in the minimum capital requirement for Deposit Money Banks (DMBs) with national licences like Access Bank from N25 billion to N200 billion.
Access Holdings, in a statement issued on Friday in Lagos said drawing from the programme, the Group expected to raise up to N365 billion.
According to the bank, 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 programme aims to enhance the Group’s financial strength through the issuance of various financial instruments such as ordinary shares and preference shares.
“Also, alternative Tier-one 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,” it said.
According to the corporation, 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.
The corporation said this is contingent upon securing the necessary regulatory approvals.
CBN had aside the increase in the minimum capital requirement for Deposit Money Banks (DMBs) with national licences like Access Bank from N25 billion to N200 billion also raised capital requirement for banks with regional licences from N15 billion to N50 billion.
The minimum capital requirements for banks with international licences were also raised from N100 billion to N500 billion by the CBN.
According to a statement issued by the Acting Director, Corporate Communications Department of the bank, Mrs Hakama Sidi-Ali, the new minimum capital for merchant banks will be N50 billion.
Sidi-Ali also announced that the new requirements for non-interest banks with national and regional authorisations are N20 billion and N10 billion.
In a circular signed by the Director, Financial Policy and Regulation Department, Mr Haruna Mustafa, all banks were required to meet the new minimum capital requirement within 24 months commencing from April 1 and terminating on March 31, 2026.
According to him, the move is to enhance banks’ resilience, solvency, and capacity to continue supporting the growth of the Nigerian economy.
(NAN)