By Aduragbemi Omiyale

The successful N351 billion rights issue through the Nigerian Exchange (NGX) digital capital raising platform known as NGX Invest has excited Access Holdings Plc.

The chairman of the firm, Mr Aigboje Aig-Imuokhuede, said the innovative platform allowed shareholders to acquire additional shares of the organisation without stress.

Access Holdings recently completed the capital raising to enable its banking arm, Access Bank Plc, to meet the new minimum capital requirement for lenders with international operations of N500 billion.

After the bank got N351 billion from the exercise, its capital base rose to N600 billion, surpassing what the Central Bank of Nigeria (CBN) asked for its category.

“By leveraging the NGX’s E-offering platform – NGX Invest, the Company provided its shareholders with a seamless, efficient, and convenient subscriber experience significantly reducing barriers and democratizing participation in the rights issue,” Mr Aig-Imuokhuede said.

In an article published by the World Federation of Exchanges, the chief executive of NGX Group Plc, Mr Temi Popoola, had emphasised that the platform was at the core of NGX Group’s digital strategy, stating that it was designed to streamline the distribution of securities in the Nigerian capital market.

“Its user-friendly interface allows investors to onboard seamlessly and verify their identities through the Nigeria Inter-Bank Settlement System (NIBSS), using their Bank Verification Number (BVN).

“With NGX Invest, the traditionally complex and time-consuming process of investing is reduced to a few clicks, making it easier for investors across Nigeria, including those in underserved areas, to participate in the capital market,” he stated.

The success of Access HoldCo’s capital raise, making it the first bank to officially comply with the CBN’s banking recapitalisation directive, is a key social proof and testament to the robustness of NGX Invest and demonstrates the potential of NGX Group’s platform to support the growth and business goals of its issuers.

By Modupe Gbadeyanka

Stanbic IBTC Bank has solidified its position as the leading bank for capital importation in Nigeria, capturing an impressive 28.30 per cent of total foreign capital inflows in the first nine months of 2024, according to data from the Central Bank of Nigeria (CBN).

The central bank said the subsidiary of the Standard Bank Group attracted approximately $2 billion in capital imported in the period under review, demonstrating its performance during the pivotal year of 2020, which was marked by unprecedented global economic challenges.

The parallel with 2020 is particularly significant, coinciding with the onset of the COVID-19 pandemic, which significantly impacted Foreign Direct Investments (FDI) and Foreign Portfolio Investments (FPI).

Stanbic IBTC Bank weathered this storm and strategically positioned itself to capitalise on the post-pandemic economic recovery.

The lender rapidly digitised its banking operations, maintained robust risk management protocols, and supported clients through unprecedented economic uncertainty while leveraging technology to maintain seamless international financial connections.

With approximately $2 billion in capital importation, Stanbic IBTC Bank has demonstrated its ability to attract international investments during a critical economic reconstruction period.

This performance surpasses its 2023 figures of $919 million, highlighting the Bank’s growing global credibility.

At the heart of this success lies the organisation’s Fitch Triple A ratings for the Holding Company and the Bank subsidiary, which offer investors a beacon of stability in an uncertain global financial landscape.

“We are incredibly proud of what we have achieved with this milestone, as our performance in capital importation goes beyond mere financial metrics; it reflects our strong commitment to making Nigeria an attractive destination for global investors.

“By utilising our international networks and deep local expertise, we facilitate capital flows and actively reshape Nigeria’s economic narrative in the post-pandemic global landscape,” the chief executive of Stanbic IBTC Bank, Mr Wole Adeniyi, stated.

The financial institution’s strong affiliation with Standard Bank Group brings global expertise crucial for navigating post-pandemic economic complexities.

Its highly competent Corporate & Investment Banking team has been instrumental in strategically attracting international capital during economic reconstruction.

This leadership in capital importation reflects broader economic trends, facilitating international investment during global economic rebalancing, supporting Nigeria’s economic recovery, and bridging local economic needs with global investment opportunities.

The $2 billion capital importation in 2024 is not just a number but a narrative of resilience. Where 2020 represented a survival challenge, 2024 symbolises strategic triumph – transforming pandemic-induced disruptions into opportunities for growth and international financial reconnection.

Stanbic IBTC Bank is now positioned to potentially surpass other foreign-affiliated Banks in Nigeria as the primary conduit for foreign capital. This trajectory speaks volumes about its strategic adaptability in a post-pandemic world.

More than a financial achievement, this milestone represents a critical contribution to Nigeria’s economic renaissance. Stanbic IBTC Bank continues to play a pivotal role in driving economic progress and international investment appeal to Nigeria.

The organisation has effectively demonstrated how domestic financial institutions can survive global economic challenges and emerge as leaders in the global financial ecosystem.

By Adedapo Adesanya

Access Bank Plc has raised N351 billion ($228 million) in a rights offer to boost its capital as part of ongoing recapitalisation efforts directed by the Central Bank of Nigeria (CBN) to create resilient banks amid rising external shocks in the global environment.

This has pushed the bank’s share capital to N600 billion, 20 per cent above the minimum required for international banks operating in Nigeria.

Access Bank, a tier-1 bank, will use some of the proceeds to fortify its expansion plans with presence firmly across Africa and some countries in Europe.

According to the lender, the fresh capital inflow has received regulatory approvals from the CBN, the banking regulator and the Securities Exchange Commission (SEC), the capital market regulator.

The banking regulator in October 2023 announced new minimum capital requirements for Deposit Money Banks (DMBs), Microfinance Banks (MFBs) and other financial institutions in the country.

The CBN said that banks with international operations, like Access Bank, would be required to increase their capital base from N25 billion to N500 billion, while banks with national banking licences must have at least N200 billion.

IThe banks were given the end of the first quarter of 2026 to meet the new lowest capital requirement, but must within a month present their blueprint on how they intend to raise funds for this process.

Access Bank will invest 65 per cent of the raised capital to grow its loan book, spend 20 per cent to upgrade its infrastructure and the remaining 20 per cent will be used to set up new branches across the country.

The last time the banking sector was recapitalised was in 2005 when the current Governor of Anambra State, Mr Charles Soludo, was the CBN chief.

According to the current Governor of the central bank, Mr Yemi Cardoso, this is part of the lender’s commitment to fostering stronger, healthier, and more resilient banks capable of withstanding economic shocks and supporting the Government’s goal of achieving a GDP of $1 trillion by 2030.

He said the exercise would also contribute to GDP growth, better risk management, improved credit ratings, a diversified ownership base, better governance and strategic decisions, and increased market volume and value, leading to a more vibrant equity market.

“With the recapitalisation programme, our goal is to trigger the emergence of stronger, healthier and more resilient banks,” he said in June 2024.