Nigeria: Beyond the Access Bank Rights Issue

13 October 2014
opinion

Access Bank Plc will today at an extraordinary general meeting seek the permission of its shareholders to raise N68 billion from the Nigerian stock market through a rights issue. Should it get the approval of its shareholders, this will be the second time this year the bank would venture to the market to raise fresh capital. It embarked on Tier II capital raising when it issued a $400 million Eurobond in June.

Having spoken to the bank's Managing Director/CEO, Herbert Wigwe, its Executive Director, Commercial Banking, Roosevelt Ogbonna, and Chief Financial Officer, Seyi Kumapayi, the bank has been eager to explain that the capital raising falls in line with its five-year corporate strategy plan and capital plan, following its acquisition and successful coupling with the defunct Intercontinental Bank Plc. Access Bank took over Intercontinental Bank from the Central Bank of Nigeria (CBN) in 2011. Its target, the bank's executives explained, is to catapult Access Bank to one of the top three banks in the country and the "world's most respected African bank". This will be anchored on four critical pillars - capital, human capital, governance and risk management. With the rights issue, Access Bank is of the view that this would give it more headroom to be competitive and meet the funding needs of its blue chip customers that meet its credit risk criteria.

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