WATCH THE VIDEO HERE Access Bank Plc has raised N351 billion ($228 million) in a rights offer to boost its capital as part of ongoing recapitalisation efforts directed by the Central Bank of Nigeria (CBN) to create resilient banks amid rising external shocks in the global environment. This has pushed the bank’s share capital to N600 billion, 20 per cent above the minimum required for international banks operating in Nigeria. Access Bank, a tier-1 bank, will use some of the proceeds to fortify its expansion plans with presence firmly across Africa and some countries in Europe. According to the lender, the fresh capital inflow has received regulatory approvals from the CBN, the banking regulator and the Securities Exchange Commission (SEC), the capital market regulator. The banking regulator in October 2023 announced new minimum capital requirements for Deposit Money Banks (DMBs), Microfinance Banks (MFBs) and other financial institutions in the country. The CBN said that banks with international operations, like Access Bank, would be required to increase their capital base from N25 billion to N500 billion, while banks with national banking licences must have at least N200 billion. IThe banks were given the end of the first quarter of 2026 to meet the new lowest capital requirement, but must within a month present their blueprint on how they intend to raise funds for this process. Access Bank will invest 65 per cent of the raised capital to grow its loan book, spend 20 per cent to upgrade its infrastructure and the remaining 20 per cent will be used to set up new branches across the country. The last time the banking sector was recapitalised was in 2005 when the current Governor of Anambra State, Mr Charles Soludo, was the CBN chief. According to the current Governor of the central bank, Mr Yemi Cardoso, this is part of the lender’s commitment to fostering stronger, healthier, and more resilient banks capable of withstanding economic shocks and supporting the Government’s goal of achieving a GDP of $1 trillion by 2030. He said the exercise would also contribute to GDP growth, better risk management, improved credit ratings, a diversified ownership base, better governance and strategic decisions, and increased market volume and value, leading to a more vibrant equity market. “With the recapitalisation programme, our goal is to trigger the emergence of stronger, healthier and more resilient banks,” he said in June 2024.
Access Bank Raises N351bn Via Rights Issue From Capital Market
