By Rosemary Iwuala
Access Holdings Plc has announced its completion of a $300 million fresh capital investment into its flagship subsidiary, Access Bank, the proceeds of which will supplement the capital needs of its African expansion strategy.
The new funds were brought in by the parent company of the tier-1 financial institution, Access Holdings Plc.
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.
Access Holdings, in a notice to the Nigerian Exchange Limited (NGX), signed by its Company Secretary, Sunday Ekwochi, said the move will give its banking subsidiary the funds needed to offer financial services in its markets.
The capital injection will take “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 statement also said the new capital has received the approval of the Central Bank of Nigeria (CBN), the banking industry regulator.
Commenting on the transaction, 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 capitalisation needs.
“This investment is a capstone initiative following the $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,” Wigwe said.
