Nigeria’s Access Bank has been meeting with domestic investors over the past week to gauge interest in a possible rights issue of 60-70 billion naira ($369-$431 million) by the fourth quarter, a fund manager and a banking source with knowledge of the roadshow, said on Thursday.
The lender, which raised a $400 million in Eurobond in June, wants to bolster its core capital, the fund manager who attended the meetings in Lagos told Reuters, declining to be named. Access Bank was also discussing with investors in Abuja.
An official from Access Bank declined to comment.
Banks in Africa’s biggest economy have been boosting their capital levels in recent months, as the industry this year adopts new international capital requirements.
Chief Executive Herbert Wigwe told an analysts’ conference call last week while presenting the bank’s half-year results that he anticipated banks would need to raise more capital as a result of the new regulations.
A source at Access Bank said the bank was meeting with stakeholders and would determine the amount of the fundraising after the meetings.