Access Bank seeks fresh funds

In from Ali Smart …
Access Bank PLC has hinted of plans to raise fresh funds from the capital market shortly after it realised N41.8 billion from an initial Rights Issue.
Giving this hint on Wednesday, the Bank’s Executive Director, Commercial Banking, Roosevelt Ogbonna, who addressed journalists in Lagos, said the proposed rights issue was going to be a game changer of sorts.
It would be recalled that the bank had in 2013 announced a financing and growth plan it hoped would make it one of the top three banks by 2017 and had subsequently raised $400 million Eurobond before its rights issue.
“Because of its nature and structure, it will be very attractive for investors because it will be first of its kind”, Ogbonna said.
Commenting on the just concluded rights issue, he noted that the bulk of the N41.8 billion raised came from local investors.
According to him, the international investors holding 35 percent shareholding of the bank had been skeptical of the Nigerian economy and had not participated in the rights issue.
He stated that only one of the international investors had invested N290 million “the remaining N41.7 billion had come from local investors and that shows the confidence that local investors have in the bank and we are very glad about that.”

Read also: Access Bank grows revenue by 43%

Ogbonna said the additional capital had pushed Access Bank up to be in the top three banks in terms of capital, adding that this will help the bank grow in terms of loans and operations. “We hope to see this happen in the second half of the year.”

RipplesNigeria… without borders, without fears

Join the conversation

Opinions

Support Ripples Nigeria, hold up solutions journalism

Balanced, fearless journalism driven by data comes at huge financial costs.

As a media platform, we hold leadership accountable and will not trade the right to press freedom and free speech for a piece of cake.

If you like what we do, and are ready to uphold solutions journalism, kindly donate to the Ripples Nigeria cause.

Your support would help to ensure that citizens and institutions continue to have free access to credible and reliable information for societal development.

Donate Now