Business
Access Bank raises N41.8b as rights issue misses target
In from Success Allantee …
Access Bank’s recent rights issue was undersubscribed by almost a quarter as the bank was able to raise N41.8 billion out of its initial offer size of N52.65 billion.
Final allotment report cleared by the Securities and Exchange Commission (SEC) and Central Bank of Nigeria (CBN) showed that the rights issue achieved subscription level of 79.4 per cent. Access Bank had offered 7.63 billion ordinary shares of 50 kobo each at N6.90 to existing shareholders on the basis of one new share for every three shares held. The rights issue opened on January 26, 2015.
Group managing director, Access Bank Plc, Mr. Herbert Wigwe, yesterday stated that the new equity funds would allow the bank to progress with its strategy of ensuring sustainable dividends through one of the strongest capital buffers as well as providing the means for further investment to exploit target markets.
According to him, the bank is putting in place the building blocks for its future as it works to become a top three bank in Nigeria by 2017.
Read also: NSE LIVE! Zenith Bank under pressure as equities lose N208b
“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,” Wigwe said.
He said the additional capital will allow the bank to invest in its infrastructure and technology, which will make speed, service and security a guarantee for all its customers, as well as providing the firepower to diversify its geographic focus and target Africa’s fastest-growing industrial sectors.
In earlier reports on the utilization of the offer proceeds, the bank had stated that the net proceeds of the rights issue would be used to upgrade its information and communication technology (ICT) systems to provide better services and build a more robust ICT platform as well as upgrade the branch network and facilities to serve the growing number of clients and further improve the working environment of staff.
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