Days after the Central Bank of Nigeria (CBN) unfolded new policy requiring banks to increase their minimum capital, Access Holdings Plc, yesterday, took the first step among its peers by unveiling plans to establish a $1.5 billion (N1.963 trillion based on N1309/$ official rate as at Thursday), capital raising programme or its equivalent.
Access Holdings Plc, in a statement, announced plan to establish a capital raising programme of up to $1.5 billion or its equivalent.
According to the holding company, the programme aims to enhance the Group’s financial strength through the issuance of various financial instruments such as ordinary shares, preference shares, Alternative Tier 1 capital, convertible and/or non-convertible debt, bonds, or other capital and/or funding instruments.
It explained that the programme may be executed through a variety of methods including public offerings, private placements, rights issues, book building processes, or a combination thereof.
“The specifics regarding the tranches, series, proportions, dates, pricing, tenor, and other terms and conditions that may be associated, will be determined by the Board of Directors, contingent upon securing the necessary regulatory approvals.
“Drawing from the Programme, the Group expects to raise up to N365,000,000,000.00 (Three Hundred and Sixty-Five Billion Naira) specifically via a Rights Issue of ordinary shares. The proceeds of the proposed Rights Issue would be used to support ongoing working capital needs including organic growth funding for its banking and other non-banking subsidiaries.
“The plans for the Programme were disclosed in the Group’s Notice of the 2nd Annual General Meeting holding on April 19, 2024 which was published on the Nigerian Exchange portal on March 27, 2024,” it added.
