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NSE! Access Bank gets approval for $1.5bn capital raising
As Nigerian banks prepare for a new cycle of capital raising, Access Bank Plc has secured shareholders’ approval to raise up to $1.5 billion under a debt issuance programme.
Shareholders authorised the board of directors of the bank to raise up to $1.5 billion, equivalent to N459 billion under current official exchange rate.
Shareholders passed a resolution increasing the size of the bank’s existing $1 billion debt issuance programme to $1.5 billion by the addition of $500 million. This debt issuance programme will enable Access Bank to raise capital through the issuance of non-convertible loans, notes, bonds and any other instruments whether by way of public offering, private placement, book building process reverse call inquiry or any other method or combination of methods.
Chairman, Access Bank Plc, Mrs Mosun Belo-Olusoga, said growing scale of regulatory headwinds and economic realities have put demands on liquidity and capital necessitating the need to proactively make preparations for additional capital buffer.
Read also: FAAC meeting fails to hold again over inaccurate revenue figures by NNPC
According to her, the board of the bank deems it necessary to further bolster its capital and funding base through the issuance of debt securities through any instrument considered appropriate for the bank to meet its growth objectives.
Latest results for the period ended March 31, 2018 showed that Access Bank has capital adequacy ratio (CAR) and liquidity ratios(LR) of 19.3 per cent and 41.3 per cent respectively, above the minimum regulatory requirement.
However, headline figures have shown declines in the top-line and bottom-line of the bank in recent period.
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