Access Bank plc has increased its authorised share capital to N20 billion by the creation of 14 billion ordinary shares of 50 kobo each, up from N13 billion made up of 24 billion ordinary shares of 50 kobo each.
Meanwhile, the bank has won shareholders’ approval to raise up to N68 billion in fresh equity through rights issue to bolster its capital base.
At its extra-ordinary general meeting (EGM) on Monday, the bank said it would issue 7.64 billion shares to existing shareholders.
The seemingly excited shareholders approved that the authorised share capital of the bank be increased from N13 billion made up of 24 billion ordinary shares of 50 kobo each and 2 billion preference shares of 50 kobo each to N20 billion by the creation of 14 billion ordinary shares of 50 kobo each.
“The bank is seeking shareholders’ approval for the issuance of 7,640,449,438 ordinary shares of 50 kobo each. When approved, the issue will be on the basis of one ordinary share for every three fully-paid ordinary shares held by the bank’s shareholders at the qualification date,” said Gbenga Oyebode, chairman, Board of Directors, Access Bank plc, at the event.
He further stated that the additional capital that will be raised from the rights issue would enable the bank to enlarge its balance sheet and optimise returns in a sustainable and risk-controlled manner.
“Management has identified certain sectors and market segments as growth opportunities for the next five years. The bank will actively play in these markets and ensure shareholders’ value is optimised,” he said.
Herbert Wigwe, group managing director, explaining how the raised funds would be utilised, said, “We will use part of the proceeds to augment our working capital, while a part of it will be used to upgrade the information and technology platforms of the bank.”
He added that for the bank to achieve its vision of being the world’s most respected African bank, they cannot afford to stand still.
“With the additional funds, we will ensure our customers get improved services through an expanded branch network that will ensure the provision of an enabling working environment,” he said.
Sunny Nwosu, a shareholder, who is also the national coordinator of the Independent Shareholders Association of Nigeria (ISAN), commended the bank for its laudable efforts to increase shareholders’ value.
“The proactive nature of the bank is commendable. The shareholders are appreciative of the foresight with which the bank conducts its dealings and are ready to take up their rights in full,” Nwosu said.
It would be recalled that Access Bank recently raised $400 million dollars in Tier-2 capital. This was done to create headroom for credit growth and extension of the duration of the foreign currency of the balance sheet.
