Banking
Access Bank Obtains Regulatory Approval for N75b Rights Issue
By Dipo Olowookere
A regulatory approval has been obtained by Access Bank for its proposed raising of N75 billion ($207 million) through rights issue.
Access Bank, during its investor conference call on Wednesday, disclosed that the rights issue would be launched in the first half of 2019, mostly likely after the completion of its acquisition of Diamond Bank.
“Access Bank has historically maintained strong capital levels comfortably in excess of minimum regulatory requirements and is concluding a $250 million Tier II capital raise.
“Access Bank has also obtained regulatory approval to raise up to N75 billion (~$207 million) in a rights issue to be launched during H1 2019.
“This accelerates the capital management plan to support retail growth, set out in the Bank’s five year strategy,” the financial institution said during the call.
On Monday, Access Bank and Diamond Bank announce a merger that results in an enlarged Tier-1 Nigerian banking franchise and the largest bank in Africa by retail clients.
This followed the entry into a Memorandum of Agreement, approved by the Boards of both banks as announced on December 17, 2018, with both lenders receiving no objection from the Central Bank of Nigeria (CBN), the sector’s regulator.
According to details of the deal, Diamond Bank shareholders will receive N1.00 in cash for each share held in Diamond Bank and two Access Bank shares for every 7 shares held in Diamond Bank, implying pro-forma ownership structure in the combined entity of 81 percent for Access Bank shareholders and 19 percent for Diamond Bank shareholders.
The transaction combines Access Bank’s strong management team and risk management culture with Diamond Bank’s growing retail franchise, with potential for strong value creation for shareholders via extraction of financial synergies
The deal is expected to create a strong, safer financial institution with a diversified product offering and expanded distribution capabilities to provide clear benefits for customers, staff, and key stakeholders
In the pre-transaction completion, Diamond Bank is expected to undertake an impairment on its loan book pursuant to the implementation of IFRS 9, which is currently being evaluated and will be reflected in 2018YE numbers, while a Joint Implementation and Integration Committee was established to prepare and manage post-completion integration and strategic efforts.
In the dateline seen by Business Post, both parties will file for CBN approval of the merger in principle this month, while a clearance of scheme of merger from the Securities and Exchange Commission (SEC) is expected next month.
In March 2019, Access Bank and Diamond Bank look forward to having Court Ordered Meetings to seek shareholders’ approval, while the court sanction is projected for same month.
Both lenders hope to have the final approval of SEC and CBN between April and May 2019, while the transaction should be finalised before the end of June 2019.
By Modupe Gbadeyanka
About N3.6 trillion has been repaid to the Central Bank of Nigeria (CBN) by the Asset Management Corporation of Nigeria (AMCON) since its inception in 2010.
This information was revealed by the chief executive of AMCON, Mr Gbenga Alade, during a media parley to update the press on the activities of the agency.
Mr Alade said at the moment, the organisation still owes the central bank about N3 trillion for toxic assets of banks in the country.
He praised the organisation for its asset recovery drive, stressing that when compared with others across the world, Nigeria has done well.
“It is important to stress that the corporation has done tremendously well, especially when compared to other notable government-owned Asset Management Corporations around the world.
“Based on the balance at purchase, AMCON outperformed other Asset Management Corporations all over the world by achieving over 87 per cent in recoveries despite the unique challenges associated with debt recovery in Nigeria.
“The Malaysian Danaharta, which is adjudged one of the best performing Asset Management Corporation’s, only achieved 58 per cent. The Chinese Asset Management Corporation, despite its stricter laws, achieved just 33 per cent.
“Only the Korean Asset Management Corporation (KAMCO), South Korea, has achieved more recoveries than AMCON, with about 100 per cent. This was due to their brute force with which they chased the obligors.
“Despite KAMCO’s recovery records, the agency is still operational to date with slight realignments in its mandate.
“Other noted Asset Management Corporations that have transitioned into a perpetual institution of the various governments include, China Asset Management Company, Federal Deposit Insurance Corporation (FDIC) USA, and KFW Germany.
“So, gentlemen, without sounding immodest, AMCON has done well, and we will not relent until all the outstanding debts are fully realized,” Mr Alade stated.
On the financial performance of AMCON, he said last year, the firm posted a revenue of N156.25 billion and operating expenses of N29.04 billion, while for the 2025 fiscal year should be a revenue of N215.15 billion and operating expenses of N29.06 billion.
By Modupe Gbadeyanka
One of the non-interest banks in Nigeria, The Alternative Bank (AltBank), has opened a new branch in Effurun, Delta State.
The new office will serve the Edo-Delta region and provide purposeful banking and real financial empowerment for individuals, entrepreneurs, and businesses, a statement from the firm stated.
The lender disclosed that the Effurun branch is a bold move in its mission to reshape banking in Nigeria.
The launch was graced by key dignitaries, including the Ovie of Uvwie Kingdom, Emmanuel Ekemejewa Sideso Abe I; the Chairman of Uvwie Local Government, Anthony O. Ofoni, represented his vice, Andrew Agagbo; and the Special Adviser to the Governor of Delta State on Community Development, Mr Ernest Airoboyi; amongst others.
The Divisional Head for South at The Alternative Bank, Mr Chukwuemeka Agada, emphasised the institution’s commitment to Warri and its surrounding communities.
“By establishing a presence here, we are initiating a transformation in the way banking serves the people of Delta. Our purpose-driven approach ensures that customers’ financial goals are not just met but exceeded,” he stated.
“This branch represents our pledge to empower Warri’s dynamic businesses and families, providing them with the tools to grow without compromise,” Mr Agada added.
“We understand the heartbeat of this community, and we are excited to integrate our bank into the fabric of this dynamic region,” he stated further.
On his part, the representative of the Ovie, Mr Samuel Eshenake, challenged the bank to facilitate development and employment within the Effurun community.
The Regional Head for Edo/Delta at The Alternative Bank, Mr Akanni Owolabi, embraced this challenge, pledging that the bank will work sustainably to drive local commerce.
“At The Alternative Bank, we are committed to being an active partner in the development of Effurun. We see this branch as a catalyst for creating opportunities, driving employment, and supporting the growth of local businesses.
“Our mission is to empower this community, ensuring that every step forward is one of progress, prosperity, and shared success.”
By Aduragbemi Omiyale
A partnership aimed to enable seamless, real-time and secure transactions for cardholders across Africa and the rest of the world has been entered into by Payattitude and PAPSSCARD, the card scheme initiative of the Pan-African Payment & Settlement System (PAPSS).
The collaboration will allow Payattitude cards issued by banks and other deposit-taking institutions to be co-branded with PAPSSCARD, Discover, Diners and Pulse for acceptance across their networks in Nigeria, Africa and worldwide.
As an initiative of the African Export-Import Bank (Afreximbank) and a key financial infrastructure supporting the African Continental Free Trade Area (AfCFTA), the PAPSSCARD scheme will facilitate instant cross-border payments in local currencies.
“This partnership reflects our commitment to cross-enterprise alliances and enabling inclusive, efficient, and borderless payments across Africa and the world
“With Payattitude, Nigerian cardholders and financial institutions can now enjoy the benefits of a Nigerian card that can be used worldwide,” a director at Payattitude, Dr Agada Apochi, said.
The acting chief executive of PAPSSCARD, Mr John Bosco Sebabi, said the aim is “to connect African payment ecosystems, reduce the cost and inefficiencies of cross-border payments, and strengthen African sovereignty over payments infrastructure.
“Collaborating with Payattitude, a key innovator in Nigeria’s payment space, represents a significant step towards a more unified African payment landscape.”
The chief executive of PAPSS, Mr Mike Ogbalu, said, “By bringing together PAPSSCARD’s robust cross-border payment capabilities with Payattitude’s leadership in the Nigerian digital payments, we are taking tangible steps toward building a single African market where individuals and businesses can transact easily and securely, both within and beyond Africa.”
Payattitude is the first-in-kind Nigerian Payment Scheme to pioneer multibank App and USSD Code *569#.
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