BusinessAccess Holdings Unveils Plans To Raise $1.5bn Capital As CBN Orders Fresh...

Access Holdings Unveils Plans To Raise $1.5bn Capital As CBN Orders Fresh Recapitalisation

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March 30, (THEWILL)- Africa’s leading financial group, Access Holdings Plc, has unveiled plans to raise US$1,500,000,000.00 (One Billion, Five Hundred Million United States Dollars) or its equivalent.

THEWILL reports that the plan is coming after the Central Bank of Nigeria (CBN) announced a new policy requiring banks to increase their minimum capital,

The apex bank had on Thursday, announced a fresh recapitalisation policy mandating commercial banks with international, national and regional authorisation to uphold minimum share capital thresholds of N500 billion, N200 billion, and N50 billion, respectively.

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However, 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.

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 up to N365,000,000,000.00 (Three Hundred and Sixty-Five Billion Naira) 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.

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