Key Highlights
- Access Holdings Plc has completed a $300 million capital investment into its flagship subsidiary, Access Bank Plc.
- The investment takes the form of a Tier 1 capital qualifying a mandatory convertible instrument and is expected to improve the bank’s shareholders funds and total ratios.
- Over the years, the bank has made significant strides towards attaining strong market presence in the key trade and payments corridors across the African continent.
Access Holdings Plc has announced the completion of a $300 million capital investment into its flagship subsidiary, Access Bank Plc.
In corporate disclosure seen by Nairametrics, Access Holdings explained that the proceeds will supplement the capital need of its African expansion strategy.
Strive for presence in the key trade and payments corridors: The Holding Company noted that over the years, the bank has made significant strides towards attaining a strong market presence in the key trade and payments corridors across the African continent.
The statement, signed by the Company Secretary Sunday Ekwochi, noted that the investment takes the form of a Tier 1 capital qualifying a mandatory convertible instrument and is expected to improve the bank’s shareholders’ funds and total ratios. It added that the Central Bank of Nigeria has approved the investment.
Non-dilutive approach to raising growth capital
Commenting on the transaction, Dr Herbert Wigwe, Group Chief Executive of Access Holdings said that as a leading financial institution in the continent, the Group remain foresighted in its approach to growth and capitalisation needs.
- “This investment is a capstone initiative following the $500 million additional Tier 1 capital raised by the bank in 2021 and advances its vision to the world’s most respected African bank.
- “Access Holdings benefits from this non-dilutive approach to raising growth capital as we continue to invest in initiatives geared towards delivering our vision of building a globally connected community and ecosystem inspired by Africa for the world through disciplined growth and diversification,” he said.
In case you missed it
Access Holdings Plc recently disclosed that Access Bank Zambia Limited a subsidiary of Access Bank Plc has received final regulatory approval from the Central Bank Zambia for the acquisition and merger of African Banking Corporation Zambia Limited into its existing operations.
Access Bank said it will move towards integrating and merging Atlas Mara Zambia into its operations, which is expected to create one of the top five banks in Zambia.
Commenting on the transaction on the development, Access Bank’s Group CEO Herbert Wigwe said the combination of the two banks will create significant synergies between Access Zambia’s world-class wholesale and transaction banking capabilities and Atlas Mara Zambia’s market-leading retail and public sector capabilities to form a market leading Universal platform that will greatly impact the Zambian market.