On the back of increases in the capital base of financial institutions announced by the Central Bank of Nigeria (CBN) earlier in the week, Access Holdings Plc, one of Africa’s leading financial groups, has unveiled plans to establish a Capital Raising Programme of up to $1,500,000,000.00 (one billion, five hundred million dollars) or its equivalent.
The programme, the organization said in a statement on Friday, 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.
Drawing from the programme, the Group expected to raise up to N365 billion, specifically via rights issue of ordinary shares.
It said 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 programme aims to enhance the Group’s financial strength through the issuance of various financial instruments such as ordinary shares and preference shares. Also, alternative Tier-one capital, convertible and/or non-convertible debt, bonds, or other capital and/or funding instruments.
“The programme may be executed through a variety of methods, including public offerings, private placements, rights issues, book building processes, or a combination thereof,” it said.
It said 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.
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.
Access Holdings Plc is a multinational financial services group that offers commercial banking, lending, payment, insurance, and asset management services.
