Introduction
Access Holdings Plc, the parent company of Nigeria’s largest bank by assets, has announced plans to raise ₦351 billion ($233 million) from existing shareholders. This strategic move is aimed at supporting the company’s ambitious goal of becoming “the world’s most respected African bank.” The fundraising will be conducted through a rights issue of 17.7 billion new ordinary shares at ₦19.75 each.
Strategic Vision
During a presentation to shareholders and stakeholders at the Nigerian Exchange Limited (NGX), Aigboje Aig-Imoukhuede, Chairman of Access Holdings Plc, emphasized the bank’s global aspirations. He noted that Access Holdings, with over 60 million customers and a presence on three continents, plans to expand into new markets, including the United States, and establish a trade booking office in Malta. The focus is on strategic markets with high financial potential rather than ego-driven expansions.
Utilization of Funds
The proceeds from the rights issue will be allocated to various strategic initiatives:
- Loan Book Expansion: ₦223 billion (65% of the proceeds) will be used to grow the loan book, enhancing lending services across corporate, commercial, retail, and SME segments.
- Infrastructure Upgrades: ₦68.62 billion (20%) will be invested in upgrading and developing infrastructure.
- Distribution and Product Channels: ₦51.46 billion (15%) will be directed towards expanding distribution channels, including opening new branches in Lagos, Port Harcourt, and Abuja over the next 24 months.
Historical Growth and Acquisitions
Access Holdings has a history of aggressive growth through acquisitions. Since the acquisition of Access Bank by Aigboje Aig-Imoukhuede and Herbert Wigwe in 2002, the bank has expanded its presence in 18 countries. Notable acquisitions include Intercontinental Bank in 2012, Diamond Bank in 2019, and the recent acquisition of majority shares in Standard Chartered Bank’s subsidiaries in several African countries, as well as the African Banking Corporation of Tanzania in 2024.
Investor Confidence and Market Strategy
Bolaji Agbede, Acting Managing Director/CEO of Access Holdings Plc, stated that the rights issue is crucial for delivering the company’s 2023-2027 strategic plan, maximizing emerging opportunities, and providing long-term value to shareholders. The rights issue has garnered overwhelming support from shareholders, with a unanimous vote at the company’s second annual general meeting in April 2024.
Conclusion
Access Holdings’ capital-raising initiative is a strategic step towards becoming a global financial powerhouse. By focusing on profitable markets and investing in critical areas of growth, Access Holdings aims to solidify its position as a leading African bank on the global stage.