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
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