BLOOMBERG: ACCESS Bank Plc Secures $228 Million Through Rights Offer

Access Bank Plc, Nigeria’s largest lender by assets, has raised 351 billion naira ($228 million) through a rights offer to strengthen its capital beyond a new regulatory requirement as part of its expansion strategy.

The lender’s share capital — at 600 billion naira — is now 20% above the minimum required for international banks operating in the West African country, Access Bank said in an emailed statement on Wednesday.

The fresh capital inflow has received regulatory approvals from both the Central Bank of Nigeria and the Securities Exchange Commission, it said.

The fund raising will help Access Bank, controlled by Access Holdings Plc, accelerate its expansion into new markets including Morocco, Egypt and the US and double the share of assets outside its home market by 2027.

The rights offer is part of the bank’s plan to raise $1.5 billion to help meet regulatory norms after the central bank ordered large commercial lenders to shore up their capital 10-fold to 500 billion naira by March 2026.

The lender has operations in 23 countries after an aggressive growth into new markets.

Access Bank’s shares have risen 6.7% in Lagos this year after more than doubling in 2023. Earlier this month, the bank agreed to acquire Bidvest Bank Holdings Ltd. for about 2.8 billion rand ($159 million) to help the Nigerian lender expand in South Africa.

SOURCE: BusinessDay