Access Bank completes N41.8bn rights issue

Access Bank Plc on Tuesday said it had successfully completed the rights issue of N41.8bn ordinary shares at N6.90 per share.

The bank had opened the issue on January 26, 2015, offering one ordinary share for every existing three units at a price of N6.90 per share.

That followed the approval of the Central Bank of Nigeria and the Securities and Exchange Commission, Access Bank said in a statement.

According to the statement, the funds raised accounts for 80 per cent of the total number of new ordinary shares offered to shareholders.

The bank explained that the rights issue placed investors firmly at the centre of its strategy, ensuring sustainable dividends through one of the strongest capital buffers as well as providing the means for further investment to exploit target markets.

The Group Managing Director, Access Bank, Mr. Herbert Wigwe, was quoted as saying that the issue was part of steps to strengthen the bank.

He said, “We are putting in place the building blocks for our future as we work to becoming a top three bank in Nigeria by 2017. The capital raised will allow us to retain our place among Nigeria’s best-capitalised banks and underscores our continued commitment to prudent risk management as we seek growth opportunities both in Nigeria and abroad.”

Wigwe added that the additional capital would allow the bank to invest in infrastructure and technology, which would make speed, service and security a guarantee for its customers.

He said the funds raised would also help the bank to diversify its “geographic focus and target Africa’s fastest-growing industrial sectors”.

Access Bank, a full service commercial bank, operates through a network of 367 branches and service outlets located in major centres across Nigeria, Sub Saharan Africa and the United Kingdom.

According to the bank, it has over 830,000 shareholders including several Nigerian and international institutional investors.

As part of its continued growth strategy, Access Bank said it was focusing on mainstreaming sustainable business practices into its operations.

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Source : Punch

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