Bank capitalization: Access Holdings plans raising $1.5bn

Access Holdings Plc has unveiled plans to establish a capital raising programme of up to $1.5 billion or its equivalent.

The corporation disclosed this in a statement on Friday in Lagos.

The corporation said that, drawing from the programme, the Group expected to raise up to N365 billion, specifically via rights issue of ordinary shares.

It said the proceeds of the proposed rights issue would be used to support ongoing working capital needs, including organic growth funding for its banking and other non-banking subsidiaries.

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“The programme aims to enhance the Group’s financial strength through the issuance of various financial instruments such as ordinary shares and preference shares.

“Also, alternative Tier-one capital, convertible and/or non-convertible debt, bonds, or other capital and/or funding instruments.

“The programme may be executed through a variety of methods, including public offerings, private placements, rights issues, book building processes, or a combination thereof,” it said.

According to the corporation, the specifics regarding the tranches, series, proportions, dates, pricing, tenor, and other terms and conditions that may be associated will be determined by the Board of Directors.

The corporation said this is contingent upon securing the necessary regulatory approvals.

Access Holdings Plc is a multinational financial services group that offers commercial banking, lending, payment, insurance, and asset management services.

The Star