Access Bank expresses confidence in raising $300 million through recapitalization, according to Aig-Imoukhuede

Mr. Aigboje Aig-Imokhuede, the Chairman of Access Holdings Plc, expresses certainty in the bank’s ability to get $300 million in capital for Access Bank. This confidence is based on the bank’s robust market position and the unwavering support of its shareholders.

Aig-Imokhuede made this statement during an interview at the sidelines of Access Holdings’ second Annual General Meeting (AGM) in Lagos.

The Central Bank of Nigeria (CBN) issued a directive on March 29, instructing commercial banks in Nigeria with international authorization to increase their capital base to N500 billion, while national banks are required to raise theirs to N200 billion.

The recapitalization process is scheduled to begin on April 1 and conclude on March 31, 2026.

As a result, the shareholders of Access Bank, during the Annual General Meeting (AGM), unanimously supported the Group’s proposal to create a capital raising initiative of up to $1.5 billion.

In addition, they have also reached an agreement to implement the subset plan, which aims to generate a maximum of N365 billion. This will be achieved by a Rights Issue of ordinary shares that will be offered to the company’s existing shareholders.

The funds raised from the rights offer will be utilised to meet the group’s continuous working capital requirements, which includes providing financial assistance for the organic expansion of both the banking and non-banking entities.

Aig-Imokhuede stated that after announcing their intention to raise capital through a Right Issue, he was optimistic that the bank’s shareholders would provide their support.

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He asserted that Access Holdings has a distinctive affiliation with the capital market in both Nigeria and on a global scale. “This is not the first instance in which CBN has implemented such a policy.”It is worth noting that in 2004, the Central Bank of Nigeria (CBN) mandated all banks to increase their capital to N25 billion. At that time, Access Bank had a capital of around N3 billion.

During the period from 2004 to 2007, our team, under my leadership as the CEO of the bank, successfully secured a total of two billion dollars in common stock capital.Thus, by 2024, when Access Holdings has matured, gained wisdom, strength, size, and earned great respect from the capital market with a shareholder base of over 800,000, acquiring $300 million in capital for its banking subsidiary, Access Bank, is not a big difficulty.

“We informed the market in advance that we will be conducting a Right Issue, which implies that we must include everyone, regardless of our significant institutional shareholders.”However, we are committed to ensuring that both major and small shareholders remain with us as we progress.They have consistently provided support when necessary, citing valid grounds, due to their belief in the firm and the anticipated results resulting from the capital raising activity.