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HomeCompany NewsAccess Holdings launches N17.77 bln rights issue to drive expansion

Access Holdings launches N17.77 bln rights issue to drive expansion

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Access Holdings Plc has announced the signing of a N17.77 billion rights issue, offering ordinary shares of N0.50 each for N19.75 per share. This capital-raising initiative aligns with the company’s strategic expansion plans.

This rights issue comes in the wake of the Central Bank of Nigeria (CBN) raising the minimum capital base for banks with international authorization to N500 billion.

At the signing ceremony held during a board meeting in Lagos, the Group Chairman of Access Holdings, Aigboje Aig-Imoukhuede emphasized the strategic importance of this capital infusion.

He stated that the proceeds will be directed towards the group’s ambitious expansion across Africa and beyond, and will also support investments in non-banking sectors such as pension and fintech.

The CBN’s recent regulatory adjustments include increased minimum capital bases for various categories of banks.

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Commercial banks with national authorization must now meet a minimum capital requirement of N200 billion, while those with regional authorization must adhere to a N50 billion minimum.

Merchant banks are now required to maintain a minimum capital base of N50 billion. Additionally, non-interest banks with national and regional authorizations must meet new minimum requirements of N20 billion and N10 billion, respectively.

The rights issue represents a significant step for Access Holdings Plc as it seeks to strengthen its financial foundation and diversify its operations.

By channeling funds into both banking and non-banking businesses, including the burgeoning fintech sector, Access Holdings aims to enhance its market position and drive sustainable growth.

This strategic move is expected to bolster Access Holdings’ ability to navigate the increasingly competitive and regulated banking landscape in Nigeria and across the African continent.

(Edited by Oludare Mayowa; omayowa@globalfinancialdigest.com; Newsroom: +234 8033 964 138)

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