SEC approves Access Bank’s plan to raise N52.6bn

The Securities and Exchange Commission (SEC) has approved plans by Access Bank Plc to raise N52.6 billion through rights issue for its expansion and stronger cash reserve.
This is contained in a statement issued in Lagos on Monday by the bank.
The statement said that the bank would issue 7.63 billion shares of 50k each at N6.90 per share to its existing shareholders by way of rights issue.
Shareholders of the bank had approved the board of directors’ proposal to raise additional equity at an Extra Ordinary Meeting (EGM) held in Lagos on Oct. 13, 2014.
The move, according to the statement, is in line with the bank’s five-year corporate plan to be one of the top three banks in the country and the most respected African bank.
It said that the corporate strategy would be anchored on four pillars, namely capital, human capital, governance and risk management.
The statement said the proceed would enable the bank to be more competitive and meet the funding needs of its blue-chip customers who meet its credit risk criteria.
It quoted Mr Herbert Wigwe, the bank’s Group Managing Director as saying that proceeds from the offer would also be used to upgrade the bank’s information technology platforms for better services.
Wigwe, according to the statement, added that the proceeds would be used for upgrading the bank’s branch networks and improving its working environment.
“The funds raised would provide Access Bank with additional capacity to further consolidate its leading corporate banking business.
“It will also form additional capital headroom to support our increasing market share in the SME and retail segments,” it quoted Wigwe as saying.
NAN reports that Access Bank’s shareholders at an EGM held in Lagos on Oct. 13, 2014, approved the board of directors’ proposal to raise additional equity.
Access Bank also launched a highly successful $400 million Eurobond in June 2014. The transaction follows the bank’s highly successful $350 million five-year senior debt, issued in 2012.