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Access Holdings to deploy N351bn raised via rights issue to fund banking, fintech

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Access Holdings to deploy N351bn raised via rights issue to fund banking, fintech

Access Holdings Plc, the parent company of Access Bank, says it will use N351 billion raised through rights issue to fund banking and fintech businesses.

Aigboje Aig-Imoukhuede, the chairman of Access Holdings, announced this at the signing ceremony of the rights issue on Tuesday at Access Tower, the corporate office of Access Holdings in Lagos.

According to him, the 17.77 billion new ordinary shares offered to Access Holdings’ existing shareholders at N19.75 kobo per share showed the company does not leave anyone behind.

Access Holdings intends to infuse capital into Access Bank after the Central Bank of Nigeria (CBN) required banks to increase their capital base.

On March 29, CBN announced a hike in the minimum capital requirements for commercial, merchant and non-interest banks.

The capital base for commercial banks with international licences was adjusted to N500 billion, while the minimum capital requirements for national and regional licence holders were pegged at N200 billion and N50 billion, respectively.

With a capital base of N251.81 billion based on its audited financial statement for 2023, Access Bank, requires N248.19 billion to meet the minimum capital requirements for international licence holders.

In a statement on Tuesday, Access Holdings said the capital raised through the rights issue will include organic growth funding for its banking and non-banking subsidiaries.

“Access Holdings’ shareholders had at its 2nd annual general meeting (AGM), which held on Friday, April 19, 2024, unanimously backed its plan to execute a capital raising programme of about US$1.5 billion as well as the subset initiative to raise capital through a Rights Issue of ordinary shares to its shareholders,” the company said.

“Under the Rights Issue, 17,772,612,811 (Seventeen billion, seven hundred and seventy-two million, six hundred and twelve thousand, eight hundred and eleven) ordinary shares of N0.50 each at N19.75 per share on the basis of 1 (one) new ordinary share for every 2 (two) existing ordinary shares held as of Friday, June 7, 2024.”

Bolaji Agbede, acting group chief executive officer (GCEO) of Access Holdings, said the rights issue is a significant step in delivering the company’s 2023-2027 strategic plan.

“The additional capital will enable us to maximise emerging opportunities and deliver long-term value to our shareholders,” Agbede said.

Access Holdings said subject to the approval of the Securities and Exchange Commission (SEC), the acceptance and application lists for the rights issue are expected to open on July 8 and close on August 8.

The company said the circular for the rights issue, which includes a provisional allotment letter and the participation form, will be mailed directly to the group’s shareholders.

Shareholders were advised by Access Holdings to consult their stockbroker, fund and portfolio manager, accountant, banker, solicitor, or any other professional adviser for guidance before subscribing in case of any uncertainties.

Access Holdings said Chapel Hill Denham is the lead issuing house to the offer, while Atlas Registrars Limited will serve as registrars throughout the exercise.

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