By InvestAdvocate
Lagos (INVESTADVOCATE)-Nigeria’s top tier lender, Access Bank Plc on Monday opened its N52.6 billion ($275.10 million) rights issue at N6.90 per share and will sell 7.63 billion ordinary shares each at a ratio of one new share for every three held by existing shareholders, according to a source at the bank who spoke with InvestAdvocate on phone on the condition of anonymity because he is not authorised to speak with the press.
The lender had earlier in an issuer’s announcement to the Nigerian Stock Exchange (NSE) said that it would open its proposed Rights Issue at N8.90 kobo per share and will issue 7.640 million ordinary shares of 50 kobo each.
Obinna Nwosu, group deputy managing director (GDMD) of the bank in September last year told journalists that funds to be raised from the proposed Rights Issue will be used for expansion purposes, boosting infrastructure and lending.
“Now to talk specifically, the money that would be raised will be used for the bank’s expansion. Some will be used as working capital and then in keeping with our international bank and African strategy, we will also continue to expand,” Nwosu said.
He also disclosed that Access Bank Plc seeks to expand to the Middle East and Asia; and would open its China unit mid-October,
Shareholders of the bank had at an Extraordinary General Meeting (EGM) held October 13 endorsed the rights issue which is expected to close March 04 and the new shares will be listed on the Nigerian bourse on June 01.
A statement from the bank said the capital raising falls in line with Access Bank’s five-year corporate strategy plan to be one of the top three banks in the country and the “world’s most respected African bank”.
“This will be anchored on four critical pillars – capital, human capital, governance and risk management. It will also enable the Bank to be more competitive and meet the funding needs of its blue chip customers that meet its credit risk criteria,” the bank added.
On his part, Herbert Wigwe, group managing director/chief executive officer, of the nation’s top tier lender affirmed that the proceeds from the offer will be used to upgrade the Bank’s information technology platforms to enable it provide better services, upgrade the Bank’s branch networks and further improve the working environment.
“The funds raised would provide Access Bank with additional capacity to further consolidate its leading corporate banking business as well as additional capital headroom to support our increasing market share in the SME and retail segments’,” Wigwe said.
According to him, despite the challenging conditions in the nation’s banking sector with regulatory changes and increased competition, the bank has continued to sharpen its execution skills, thereby ensuring a solid platform to build on.
The lender had in June 2014 launched a highly successful $400 million Eurobond which followed the bank’s highly successful $350 million five-year seniour debt issued in 2012.
