Lagos, Nigeria | December 27, 2024: Access Holdings Plc (‘Access Holdings”), Nigeria’s leading bank-led financial holding company, is pleased to announce the successful completion of its N351 billion equity capital raise, following the completion of the Central Bank of Nigeria (CBN) capital verification and subsequent receipt of the Securities & Exchange Commission (SEC) approval of the Allotment. The completion of the Offer is the first CBN and SEC approved equity capital fundraise following CBN’s announcement of bank recapitalisations in March 2024 and positions Access Bank as the first bank to meet the CBN’s N500 billion minimum capital requirements for banks with an international licence, way ahead of the 2026 deadline.
The Offer was a Rights Issue of 17,772,612,611 ordinary shares of 50 kobo each at N19.75 per share on the basis of 1 new ordinary share for every 2 existing shares. The Rights Issue was 100% subscribed and represents the largest Rights Issue by a financial services holding company in Nigeria.
The Offer opened on 8 July 2024 and closed on 23 August 2024 with strong support from a wide range of investors, including pension funds, insurance companies, asset managers, corporates, family offices, foreign portfolio investors and retail shareholders across the country and in the diaspora. The Offer also marks the first time in the Nigerian capital markets a digital application platform was used for subscriptions in a Rights Issue, maximising investor participation across the country and diaspora. PrimaryOffer by Chapel Hill Denham, Access More and NGX Invest were deployed across mobile and web platforms. 87% of total subscriptions were received through the digital platforms.
The successful Rights Issue reflects the continued investor confidence in Access Holdings and its management team, as well as the depth and resilience of the Nigerian capital market. In line with its 5-year capital plan, Access Holdings intends to use the net proceeds of the offering to strengthen the capital comfort buffers of its flagship subsidiary – Access Bank Plc – above regulatory limits to reduce the impact of any unexpected macroeconomic and regulatory changes. The proceeds from the Issue will be used to enhance Access Bank’s capital adequacy, in compliance with the regulatory capital requirements, thereby deepening the Bank’s ability to withstand systemic shocks and strengthen the Bank’s fortress balance sheet, allowing it to meet its and other banking subsidiaries’ growth needs, in line with the Group’s medium-term strategic objectives.
Commenting on the issuance, Chairman of Access Holdings, Aigboje Aig-Imoukhuede, said:
“The Access brand has always resonated strongly with the local and international capital markets. Since 2004, Access Bank has raised billions of dollars in capital to meet successive CBN recapitalisation directives. We are pleased that we are the first to breast the tape this time. The success of the Rights Issue demonstrates the resilience of Nigeria’s capital market and reinforces our shareholders’ confidence in the present value and potential of our Company.”
Bolaji Balogun, CEO of Chapel Hill Denham, Financial Adviser and Lead Issuing House on the Rights Issue, said:
“We are pleased to have led the first successfully completed capital raising by a Nigerian banking group in compliance with the Central Bank of Nigeria’s recapitalisation directives. The landmark transaction reflects the strength of Access Holdings Plc and provides further evidence of Chapel Hill Denham’s commitment to delivering results. We are grateful to Access for entrusting us with this important mandate and thank the CBN, the SEC, NGX and the CSCS, and their leadership, for their collaborative partnership.”