SEC approves Access Bank’s N52.6bn rights issue

The Securities and Exchange Commission (SEC) on Monday endorsed Access Bank Plc’s plan to raise N52.6 billion through a rights issue.

The offer opened on Monday. The fund is to enable the bank expand its operations and strengthen its cash reserve.

A statement on Monday explained that the  bank would issue 7.63 billion shares of 50k each at N6.90 per share to its existing shareholders by way of rights issue.

Shareholders had approved the board of director’s proposal to raise additional equity at an Extra Ordinary Meeting (EGM) held last October.

This, according to the statement is in line with the financial institution’s five-year corporate plan to be one of the top three banks in the country and the most respected African bank.

It said that the corporate strategy would be anchored on four pillars, namely capital, human capital, governance and risk management.

The statement said the proceed would enable the bank to be more competitive and meet the funding needs of its blue-chip customers who meet its credit risk criteria.

Also, the group managing director/chief executive officer of Access Bank, Herbert Wigwe, said the proceeds from the offer would also be used to upgrade the bank’s information technology platforms for better services.

In addition, Wigwe said the proceeds would be used for upgrading the bank’s branch networks and improving its working environment.

“The funds raised would provide Access Bank with additional capacity to further consolidate its leading corporate banking business.

“It will also form additional capital headroom to support our increasing market share in the SME and retail segments,” Wigwe added.