Access Bank Gets Fresh $300m to Execute African Expansion Strategy
By Aduragbemi Omiyale
Fresh funds have been injected into one of the leading banks in Nigeria, Access Bank Plc, for the execution of its African expansion strategy.
The capital, worth $300 million, was brought in by the parent company of the tier-1 financial institution, Access Holdings Plc.
Access Holdings, in a notice signed by its scribe, Mr Sunday Ekwochi, and filed to the Nigerian Exchange (NGX) Limited on Tuesday, said the capital investment would give its banking subsidiary the funds needed to offer financial services in its markets.
It was disclosed that the funds take “the form of a tier 1 capital qualifying Mandatory Convertible Instrument and is expected to improve the bank’s shareholders funds and total capital ratios.”
The disclosure further said the Central Bank of Nigeria (CBN), which regulates the banking industry in the country, has approved the $300 million investment in Access Bank.
“As a leading financial institution on the continent, we remain foresighted in our approach to our growth and capitalisation needs. This investment is a capstone initiative following the $500 million additional tier 1 capital raised by the bank in 2021 and advances its vision to be the World’s Most Respected African Bank.
“Access Holdings benefits from this non-dilutive approach to raising growth capital as we continue to invest in initiatives geared towards delivering our vision of building a globally connected community and ecosystem inspired by Africa for the world through disciplined growth and diversification,” the group chief executive of Access Holdings, Mr Herbert Wigwe, said.
In recent times, Access Bank has acquired different banks from Nigeria to other parts of Africa in a bid to expand its footprints on the continent.