Access Bank’s shareholders approve plan to raise $1bn fresh capital

Access Bank’s shareholders have endorsed the bank’s plan to raise additional capital up to $1 billion to be channeled into oil and gas, infrastructure, and the power sector.

The fund will be raised in tranches when needed and will be used in the bank’s priority growth sectors and in market segments that guarantee steady earnings in conformity with the bank’s sustainable growth agenda. This is 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 chairman, who spoke on the plans at the 25th annual general meeting held in Lagos on Wednesday, 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.”

He added that “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 realisation of its developmental goals and commitment to society”, he noted.

In a related develop ment, the shareholders also unanimously approved the re-election and election of new directors to the bank’s board. The new directors are Paul Usoro (SAN) and Ajoritsedere Awosika.

The highlight of the 2014 edition of the annual general meeting was shareholders’ commendation of the bank’s management and board for the performance recorded for the period under review.

According to Mukhtar Mukhtar, chairman, Shareholders Trustee Association of Nigeria (SSAN), “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 Mukhtar Mukhtar, Farouk Umar, president, Solidarity Shareholders Association of Nigeria (SSAN), who formally welcomed and congratulated Herbert Wigwe as the new group managing director of the bank, 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 35 kobo, totalling N8 billion to shareholders in 2013 is “a demonstration of responsibility and fulfillment of the promise of creating value for shareholders”.

Boniface Okezie, president, Progressive Shareholders Association of Nigeria (PSAN), said that Access Bank has an impressive history of delighting shareholders, and urged the bank’s new group managing director, Herbert Wigwe, to continue to sustain the tradition.

HOPE MOSES-ASHIKE