Access Holdings begins N351bn capital raise July 8

Access Holdings Plc will open its 17,772,612,811 ordinary share rights issue to existing shareholders on Monday, July 8, 2024.

Speaking at the signing ceremony for the Rights Issue, which was held at the corporate head office of Access Holdings in Lagos on Tuesday, the Group  Managing Director of the holdco, Mrs Bolaji Agbeje, stated that the rights issue would create real value for all and position the group for sustained growth for the future.

 “Our success is rooted in our resolute dedication to  excellence, our strategic vision, market research, resilience, and ability to adapt to the ever evolving financial landscape.

With his ceremony, we are taking a bold step in our vision to build a connected community and ecosystem inspired by Africa for the world.

“Indeed, the realisation of this vision requires the full backing of our valued shareholders. It is your support thaensures that we optimise the emerging opportunities in the ecosystem and create long term value.

“The rights issue, which is a key component of our 2023-2027 strategic plan, is opened to existing shareholders at N19.75 per share.

And offered on the basis of one for two shares held as at Friday, June 7, 2024. We are confident that this offer will be well received by the shareholders.

“We appreciate your continued trust and support. And we look forward to your full participation once the offers is opened on Monday, July 8, 2024.

The Rights Issue is a step towards meeting the N500 billion new capital base mandated for top commercial banks in the country.  According ro a circular issued by the Central Bank of Nigeria in April 2024, deadline for recapitalisation is March 31, 2026.

The Chairman of the group, Aigboje Aig-Imoukhuede noted that this was the second rights issue by Access Corporation, having held its first rights issue in 2002.

“Today, we are here for another significant corporate action in the life of the Access ecosystem. We want to write another chapter in the history of Access Holdings.

It is significant for me for many reasons. This is the first time that we are bringing to the market Access Bank financial instrument that Herbert is not there. It seems very strange. But we know he is part of this offer. He is sitting here with us in spirit. And the spirit is very present in our hearts.”

Aig-Imoukhuede stated that many people had ask about the timing when the firm announced its capital raising steps on the eve of the central bank announcement of the recapitalisation.

“I now know how it feels when in 2004 the central bank announced recapitalisation and just before that, the largest bank in Nigeria was coincidentally taking steps. I don’t think it is coincidence that the largest bank in Nigeria now has taken steps ahead of the central bank announcement.

“ Therefore, it speaks to our strategic intent and it enables early compliance with the central bank overall recapitalisation of our sector.

Our steps were not driven by that alone. The proceeds will be used to support our noble intention to fly the Access Bank flag across Africa and beyond Africa. And that capital will be deployed in line with our quite formidable rolled out programmes.”

According to the Access Holdco chair, the raised fund will also be used for the group’s non-banking business, pension and fintech.

*So, we are offering 17,772,612,811 new ordinary shares to our existing shareholders, which is an indication that we don’t leave anyone out in Access.  Yes, we have become the largest bank in Nigeria with under a million shareholders. We felt it was necessary that everybody is carried along in this capital raise exercise as it marks an important time in our history and to benefit from the long term value opportunities that exist in Access stock,” he asserted.

Also, the Managing Director of Access Bank, Roosevelt Ogbonna, stated that rights issue, public offers and corporate actions give the bank the opportunity to test its collective resolve.

“Every time we have been put to that test, we have passed in flying colours.

 “ The truth is that it is an opportunity for us to bind together as a board and more importantly, as a stakeholder group,” he averred.

Ogbonna noted that the last rights issue the bank did 22 years ago was oversubscribed.

“In the previous rights issue or capital raise that we had, we have never been at an influential point that we are today. We are the largest bank in our market, the first top 10 banks in Africa, first African bank in Honk Kong, first African bank in Malta, one of thej three African banks in Dubai, etc.,” he declared.