By Yakubu LAAH InvestAdvocate
Lagos (INVESTADVOCATE)-Nigeria’s tier one lender, Access Bank Plc has raised N41.71 billion out of its proposed N52.6 billion via its last rights issue, Reuters reported on Tuesday citing a document.
According to the report, the document showed that the rights issue meant for expansion of branches boosting infrastructure and lending was 79.32 percent subscribed by shareholders.
“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,” Obinna Nwosu group deputy managing director (GDMD) of the bank in September last year told journalists.
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.
Access Bank late January this year opened a rights issue to existing shareholders and 7.63 billion ordinary shares of 50 kobo each at a ratio of one new share for every three held by existing shareholders at N6.90 per share.
Wigwe, GMD of Access Bank said in a statement on Tuesday: “We are putting in place the building blocks for our future as we work to becoming atop three banking Nigeria by 2017. The capital raised will allow us to retain our place amongst Nigeria’s best-capitalised banks and underscores our continued commitment to prudent risk management as we seek growth opportunities both in Nigeria and abroad. This additional capital will allow us to invest in our infrastructure and technology, which will make speed, service and security a guarantee for all our customers, as well as providing the firepower to diversify our geographic focus and target Africa’s fastest-growing industrial sectors.”
The lender says shareholders commend its performance and the ability of its management to consistently enhance the quality and value of their investments, particularly through some of the strategic initiatives and decisions taken in the last couple of years, which signalled the direction the institution is heading.
Shares of the lender at the close of trading on the Nigerian bourse increased 2.44 percent opening at N4.10 and closing N4.20 per share; gaining 0.10 kobo per share.
