Access Holdings has received shareholders’ approval to raise $1.5 billion from the local and international capital markets amid its recapitalisation plan.
On April 19, shareholders voted in favour of the capital raise at Access Holdings’ annual general meeting (AGM), held in Lagos.
The company said the capital would be raised “whether by way of a public offering, private placement, rights issue, book building process or any other method or combination of methods”.
Access Holdings said the capital would be raised through issuance of ordinary shares, preference shares, alternative tier one, convertible and/or non-convertible notes, bonds or any other instruments.
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The shareholders also voted in support of increasing the issued share capital of Access Holdings from N17,772,612,811.00 to N26,658,919,216.50 ordinary shares.
On March 28, the Central Bank of Nigeria (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.
The apex bank said the increase was necessary due to prevailing macroeconomic challenges and headwinds occasioned by external and domestic shocks.
CBN said the upward review will enhance banks’ resilience, solvency and capacity to continue to support the growth of the Nigerian economy.
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