Access Bank Plc yesterday announced the injection of $300 million fresh capital for the execution of its African expansion strategy.
The new funds were brought in by the parent company of the tier-1 financial institution, Access Holdings Plc.
Access Holdings, in a notice to the Nigerian Exchange Limited (NGX), signed by its Company Secretary, Sunday Ekwochi, said the move will give its banking subsidiary the funds needed to offer financial services in its markets.
The capital injection will take “the form of a tier 1 capital qualifying Mandatory Convertible Instrument and is expected to improve the bank’s shareholders funds and total capital ratios.”
The statement also said the new capital has received the approval of the Central Bank of Nigeria (CBN), the banking industry regulator.
The statement quoted the Group Chief Executive, Access Holdings, Herbert Wigwe, as saying: “As a leading financial institution on the continent, we remain foresighted in our approach to our growth and capitalisation needs.
“This investment is a capstone initiative following the $500 million additional tier 1 capital raised by the bank in 2021 and advances its vision to be the World’s Most Respected African Bank.
“Access Holdings benefits from this non-dilutive approach to raising growth capital as we continue to invest in initiatives geared towards delivering our vision of building a globally connected community and ecosystem inspired by Africa for the world through disciplined growth and diversification.”
The capital injection will take “the form of a tier 1 capital qualifying Mandatory Convertible Instrument and is expected to improve the bank’s shareholders funds and total capital ratios.