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 Adedapo Adesanya
Access Bank Plc, the banking subsidiary of Access Holdings Plc, has entered into a binding agreement with South African-based Bidvest Group Limited for the acquisition of 100 per cent equity stake in Bidvest Bank Limited.
The deal for the 24-year-old South African lender is due to be completed in the second half of 2025, upon regulatory approval.
This shows Access Bank’s further expansion plans in line with goals set by its late founder, Mr Herbert Wigwe.
The agreement to acquire 100 percent stake in Bidvest Bank reflects Access Bank’s commitment to strengthening its footprint in South Africa and consolidating on its position as the continent’s gateway to global markets as it seeks to optimise the benefits of recent acquisitions and accelerate its transition towards a greater focus on efficiencies.
Bidvest Bank, founded in 2000 is a niche and profitable South African financial institution providing a diverse range of services, including corporate and business banking solutions and diverse retail banking products.
As of its year ended June 2024, Bidvest Bank reported total assets equivalent of $665million and audited profit before tax of $20million.
Upon conclusion of this acquisition, Bidvest Bank will be merged with the bank’s existing South African subsidiary to create an enlarged platform to anchor the regional growth strategy for the SADC region.
This is coming just as the bank opened a new branch in Malta as part of efforts to focus on international trade finance after obtaining a banking licence from the European Central Bank (ECB) and the Malta Financial Services Authority (MFSA).
Access Bank said the licence marks a transformative milestone in bolstering Europe-Africa trade flows.
The Maltese branch was established by Access Bank UK Limited, the subsidiary of Access Bank Plc, which is also the subsidiary of Access Holdings Plc, which is listed on the Nigerian Exchange (NGX) Limited.
By Modupe Gbadeyanka
To strengthen Europe-Africa trade ties, Access Bank has opened a new branch in Malta. It will focus on international trade finance, employing approximately 30 people in its initial phase, with plans for controlled expansion over time.
It was learned that this Maltese branch was established by Access Bank UK Limited, the subsidiary of Access Bank Plc, which is also the subsidiary of Access Holdings Plc, which is listed on the Nigerian Exchange (NGX) Limited.
Access Bank Malta Limited commenced operations after obtaining a banking licence from the European Central Bank (ECB) and the Malta Financial Services Authority (MFSA).
Access Bank said the licence marks a transformative milestone in bolstering Europe-Africa trade flows.
Malta, a renowned international financial centre, and a gateway between the two continents, is strategically positioned to play a pivotal role in advancing commerce and fostering economic partnerships.
This strategic expansion into Malta enables The Access Bank UK Limited to leverage growing trade opportunities between Europe and Africa.
It underscores the organisation’s commitment to driving global trade, financial integration, and supporting businesses across these regions.
“By establishing operations in Malta, we will gain a foothold in a market that bridges European and North African economies, moving us one step closer to our goal of becoming Africa’s Gateway to the World.
“It further enhances our bank’s capacity to support clients with innovative solutions tailored to cross-border trade and investment opportunities,” the chief executive of Access Bank, Mr Roosevelt Ogbonna, stated.
“Europe has emerged as Africa’s leading trading partner, driven by initiatives such as the Economic Partnership Agreements between the EU and African regions and the African Continental Free Trade Area (AfCFTA).
“With Europe-Africa economic relations entering a new phase, The Access Bank Malta Limited is ideally positioned to deepen trade and meet the financing and banking needs of our clients in these expanding markets,” the chief executive of Access Bank UK, Mr Jamie Simmonds, commented.
Also speaking, the chief executive of Access Bank Malta, Renald Theuma, said, “Malta is uniquely positioned as a bridge between Europe and Africa, making it an ideal location for our subsidiary. This move allows The Access Bank Malta Limited to engage more closely with customers in Europe and deliver tailored financial solutions that drive growth and connectivity across both continents.”
By Adedapo Adesanya
The International Finance Corporation (IFC) and Goldman Sachs have announced a new partnership with African banks, including Nigeria’s Zenith Bank and Stanbic IBTC Nigeria to support the Goldman Sachs 10,000 Women initiative, a joint programme launched in 2008 to provide access to capital and training for women entrepreneurs globally.
The two Nigerian banks are part of nine financial institutions from across Africa which have agreed to join the 10,000 Women initiative committing to leverage the business education and skills tools the programme provides to create more opportunities for women entrepreneurs across the continent by providing access to business education.
Others banks include Stanbic Bank Kenya, Ecobank Kenya, Ecobank Cote d’Ivoire, Equity Bank Group, Banco Millenium Atlantico – Angola, Baobab Group, and Orange Bank.
Speaking on this, Ms Charlotte Keenan, Managing Director at Goldman Sachs said – “10,000 Women has had a powerful impact to date, but we know that there are more women to reach and more potential to be realized.
“We are delighted to partner with IFC to supercharge the growth of women-owned businesses across Africa, and mainstream lending to female business leaders. We remain committed to supporting entrepreneurs with the access to education and capital that they need to scale.”
Since 2008, the 10,000 Women initiative has provided access to capital and business training to more than 200,000 women in 150 countries.
“This expanded initiative marks a significant step forward in creating equitable economic opportunities for women in Africa, enabling them to build stronger, more resilient businesses and to realize their entrepreneurial goals,” said Ms Nathalie Kouassi Akon, IFC’s Global Director for Gender and Economic Inclusion.
Goldman Sachs’ 10,000 Women initiative complements the Women Entrepreneurs Opportunity Facility (WEOF), launched in 2014 by Goldman Sachs and IFC as the first-of-its-kind global facility dedicated to expanding access to capital for women entrepreneurs in emerging markets.
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