ACCESS HOLDINGS INVESTS $300M TO STRENGTHEN ACCESS BANK’S EXPANSION DRIVE
Access Holdings Plc has announced its completion of a $300 million capital investment into its flagship subsidiary, Access Bank, the proceeds of which will supplement the capital needs of its African expansion strategy.
In a statement released on Tuesday, Access Holdings said part of the $300 million was to boost Access Bank’s total capital ratios.
According to the lender: “Over the years, the Bank has made significant strides towards attaining strong market presence in the key trade and payments corridors across the African continent.
“The Investment takes the form of a Tier 1 capital qualifying Mandatory Convertible Instrument and is expected to improve the Bank’s shareholders funds and total capital ratios. The Central Bank of Nigeria has approved the Investment.
“The Central Bank of Nigeria has endorsed the investment.”
Commenting on the transaction, Dr. Herbert Wigwe, Group Chief Executive of Access Holdings said: “As a leading financial institution in the continent, we remain foresighted in our approach to our growth and capitalization needs.
This investment is a capstone initiative following the US$500 million additional Tier 1 capital raised by the Bank in 2021 and advances its vision to be the World’s Most Respected African Bank.
“Access Holdings benefits from this non-dilutive approach to raising growth capital as we continue to invest in initiatives geared towards delivering our vision of building a globally connected community and ecosystem inspired by Africa for the World through disciplined growth and diversification.”
“The investment takes the form of a Tier 1 capital qualifying mandatory convertible instrument and is expected to improve the bank’s shareholders’ funds and total ratios,” Access Holdings said in a statement.
“Access Holdings is expanding into new markets on the continent and branching out into new businesses permitted by its holding company licence in pursuit of its strategy to be “Africa’s gateway to the world.”
In January, Access Bank announced that its bid to take over Kenya’s Sidian Bank had fallen through after at least half a year in the works.