Through a rights issue, Access Bank Plc, Nigeria’s biggest lender by assets, raised $351 billion ($228 million)Its new capital is 20% over the bare minimum required for foreign banks operating in the West African countryThe bank also stated that both the CBN and the SEC have approved the fresh capital influx with their regulatory licenses
Henzodaily.ng journalist Zainab Iwayemi has 5-year-experience covering the Economy, Technology, and Capital Market.
Access Bank Plc, the largest lender in Nigeria by assets, raised 351 billion naira ($228 million) in a rights sale to raise its capital over a new regulatory level as it commences its expansion strategy.
The CBN mandated that big commercial lenders increase their capital by ten times, to 500 billion naira, by March 2026. Photo Credit: Access Bank
Source: UGC
It stated in an emailed statement on Wednesday, Bloomberg reported that the lender’s share capital, at 600 billion naira, is now 20% more than the minimum needed for foreign banks doing business in the West African nation.
According to the statement, the Securities Exchange Commission and the Central Bank of Nigeria have both granted their regulatory licenses for the new capital inflow.
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The money raised would assist Access Bank, which is owned by Access Holdings Plc, double its share of assets outside of its home market by 2027 and speed up its entry into new markets like Morocco, Egypt, and the US.
Access Bank is to raise $1.5 billion through the rights sale to help comply with regulatory standards after the central bank mandated that big commercial lenders increase their capital by ten times, to 500 billion naira, by March 2026.
Following an ambitious expansion into new markets, the lender now operates in 23 nations.
After more than doubling in 2023, Access Bank’s shares have increased 6.7% this year. In order to support the Nigerian lender’s expansion in South Africa, the bank agreed earlier this month to pay roughly 2.8 billion rand ($159 million) to acquire Bidvest Bank Holdings Ltd.
Access Holdings releases performance breakdown in 9 months
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Henzodaily.ng reported that Access Holdings Plc, the parent company of Access Bank, has reported a gross revenue of N3.4 trillion in 2024.
This represents a 114.5% increase from the N1.6 trillion in nine months of 2023.
Access Holdings’ unaudited results for the third quarter (Q3) showed strong growth with gains across its banking and non-banking subsidiaries, including Access ARM Pensions, Hydrogen Payments, and Access Insurance Brokers.
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Source: Henzodaily.ng