Access Bank Plc says it has raised N351 billion through rights issue to boost its capital base above the regulatory threshold as it embarks on an expansion plan.
In a statement to Bloomberg on Wednesday, Access Bank said its share capital — at N600 billion — is now 20 percent above the minimum required for banks with an international licence.
Access Bank said the fresh capital inflow has received regulatory approvals from both the Central Bank of Nigeria (CBN) and the Securities Exchange Commission (SEC).
The publication added that the fundraising will help Access Bank to accelerate its expansion into new markets including Morocco, Egypt and the United States (US) and double the share of assets outside Nigeria by 2027.
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The rights offer is part of Access Bank’s plan to raise $1.5 billion to help meet its recapitalisation target.
On March 28, CBN announced a recapitalisation exercise for financial institutions, increasing the minimum capital requirements for commercial, merchant and non-interest banks.
CBN adjusted the capital base for commercial banks with international licences to N500 billion, while national and regional financial institutions’ capital bases were pegged at N200 billion and N50 billion, respectively.
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All banks are required to meet the minimum capital requirement within 24 months, from April 1 and March 31, 2026.
On April 20, Access Holdings received shareholders’ approval to raise $1.5 billion from the local and international capital markets amid its recapitalisation plan.
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