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Access Holdings Reveals $1.5 Billion Plan to Raise Capital

March 30, 2024

 

Less than a day after the Central Bank of Nigeria (CBN) introduced a new policy mandating banks to raise their minimum capital requirements, Access Holdings Plc swiftly moved ahead of its competitors by announcing its intention to launch a $1.5 billion (or N1.963 trillion at the N1309/$ official rate as of Thursday) capital-raising initiative.

As some financial experts and bankers were happy about the recent recapitalization move, they support the requirement for banks to increase their capital to N500 billion and N200 billion for commercial banks with international

Access Holdings Plc has disclosed its intention to create a capital raising initiative worth up to $1.5 billion or its corresponding value, as stated in their official announcement.

The program can be implemented using a range of methods, such as public offerings, private placements, rights issues, book building processes, or a mix of these approaches.

“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. 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 holding on April 19, 2024 which was published on the Nigerian Exchange portal on March 27, 2024,”

 

 

Imram Muhammed/X

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