Access Bank Plc’s shareholders will vote on October 13 on the bank’s plan to sell its shares to existing investors.
The bank, which has offices in eight other countries, is seeking to raise about N68bn ($420m) in rights issue to fund operations and bolster cash reserves.
The Nigerian Stock Exchange has suspended the lender’s stock to “preserve shareholders’ value” before the sale, the bourse had said in a statement.
Banks are preparing to sell equity and debt after the Central Bank of Nigeria recently changed the way lenders calculate capital buffers.
The CBN is seeking to increase banks’ ability to withstand losses five years after it bought bad debt from lenders including Access Bank to save the industry from collapse.
The central bank has removed some assets banks can count as capital in preparation for the implementation of Basel II and III, while limiting Tier 2 capital to 33 per cent of higher-quality Tier 1 capital, according to an August 5 circular.
Access Bank shareholders include Nigerian and international institutional investors, according to its website.
Access Bank’s Group Managing Director, Mr. Herbert Wigwe, said that the lender’s shareholder had given approved for the bank to raise $1bn.
The lender, licensed by the CBN as a Tier 1 international bank, has 3,192 professional staff members, 366 branches, 1042 Automated Teller Machines 11,846 Point of Sale channels.
The bank said as Nigeria continues to be a compelling story with significant growth opportunity, it is fully embedded as a Tier 1 bank and has completed its transition to a large and diversified financial institution.
According to the Wigwe, the enhancement of Tier1 capital is imperative to making the lender to exploit the market opportunities and achieve its vision while delivering shareholder value
“We are poised for building and leveraging on resources and benefits of being a large diversified financial institution; we are resolute to achieving the objective of becoming the world’s most respected African bank.”
