Access Bank Plans $1Bn Capital Upgrade

ACCESS Bank Plc has unveiled plans to shore up its capital base to the tune of $1 billion, as the shareholders, at the 25 yearly general meeting, in Lagos, approved the proposal.

The fund raising, which will be need-based, would also be in tranches and used in the bank’s priority growth sectors and market segments that guarantee steady earnings in conformity with its sustainable growth agenda.

This would also be in furtherance of its objective of being ranked as one of the top three banks in any of the markets in which it operates.

Gbenga Oyebode, Access Bank’s chairman, said: “The Board has considered a variety of available capital raising options and came to the conclusion that having the option of raising additional financing of up to USD 1 billion or its equivalent in local currency via the issuance of debt instruments is the most cost-efficient option to meet the Bank’s capital adequacy objectives.

“The injection of fresh capital into the bank’s operations would accelerate the attainment of its aspiration of becoming the World’s Most Respected African Bank and help consolidate its position as a leading African financial institution. Enhancement of the bank’s capital base is a key imperative for the realization of its developmental goals and commitment to society.”

The shareholders also unanimously approved the re-election and election of new directors, among who are Paul Usoro and Mrs. Ajoritsedere Awosika, even as they commended the bank’s management and board for the performance recorded in the period under review.

Alhaji Mukhtar Mukhtar, Chairman, Shareholders Trustee Association of Nigeria, said: “Amidst the changes experienced in the operating environment, the ability of the Bank to grow deposits at a double-digit rate is impressive and highly commendable, noting that such signals stability and security of a financial institution”.

Corroborating him, Dr. Farouk Umar, President, Solidarity Shareholders Association of Nigeria, noted, “that shareholders are happy with the Bank and will continue to support its aspirations.” He added that the payment of a final dividend of 35kobo; totaling N8bn to shareholders in 2013 is “a demonstration of responsibility and fulfillment of the promise of creating value for shareholders”. 

The President, Progressive Shareholders Association of Nigeria Shareholders, Boniface Okezie, said that Access Bank has an impressive history of delighting shareholders, and urged , Herbert Wigwe,the bank’s new Group Managing Director to continue to sustain the tradition.