Kelvin Bowoto
Access Holdings, the parent company of Nigeria’s largest bank by asset base, plans to raise $1.5 billion (₦2.09 trillion) through a bond or share sale and $287 million (₦399.9 billion) from its shareholders via a rights issue to fund its ambitious growth plans and meet a new capital requirement by the Central Bank of Nigeria.
In a circular sent to banks, the apex bank upped the minimum capital requirement to $364.56 million, or the naira equivalent of ₦500 billion, by March 31, 2026, to address mounting macroeconomic concerns in Africa’s largest economy.
“The prevailing macroeconomic challenges and headwinds occasioned by external and domestic shocks have underscored the need for banks to raise and maintain adequate capital to enhance their resilience, solvency, and capacity to continue to support the growth of the Nigerian economy,” the Central Bank of Nigeria (CBN) said.
Access Bank, Nigeria’s third-most capitalized bank with $190.6 million (₦251.8 billion), would need to raise an extra $187.8 million (₦248.1 billion) to meet the central bank’s new recapitalization standards.
- ATTENTION: Techrectory gives ₦5,000 monthly to our top readers, CLICK HERE to become a winner.
On Thursday, Holdco, Africa’s largest consumer bank, announced that it would urge its shareholders to approve the plans during an annual general meeting on April 19.
Access plans to generate capital by expanding its issued shares from ₦17.7 billion to ₦26.6 billion. The business has requested regulatory approval to raise capital of up to ₦365 billion through a rights issue on terms and timing chosen by the board.
Access’ move to recapitalize comes as the company continues to expand rapidly in Africa, including the recent acquisition of Kenya’s National Bank of Kenya (NBK) from KCB Group for an estimated $100 million.
KCB Group CEO Paul Russo disclosed that maintaining NBK would have needed the bank to inject up to $60.7 million, despite sinking to $106.3 million since its acquisition in 2019. The war chest will enable Access to strengthen its presence in East Africa’s largest economy through the NBK acquisition.
The bank already operates in 15 African countries and is keen on expanding its presence and becoming the continent’s largest bank by 2027.
Techrectory with Agency Report.
- —Are you looking for a professional website design company to build your website? Then, contact AGGITAL WORKS.
