The amount that we mention today is high and significant and the capital-raising effort that we are pursuing is a significant step into the future.

Access Holdings Goes Digital for N365 Billion Capital Raise, Aims for Widespread Participation

Bukola Olanrewaju April 22, 2024 BUSINESS Leave a comment

…Focuses on shareholder convenience, increased participation through innovative digital tools

Access Holdings Plc, the parent company of Access Bank, is embracing technology for its upcoming N365 billion capital raise. This digital approach aims to simplify the process and encourage wider participation from all shareholders.

Leveraging Digital Power

Chairman Aigboje Aig-Imoukhuede highlighted the use of digital tools, stating, “This time around, we have digital technology that we are going to deploy fully.” He emphasized that unlike the 2004 capital raise, shareholders will be able to easily make investment decisions using their phones. This convenience should address concerns about dilution and encourage participation.

Building on Past Success

Aig-Imoukhuede expressed confidence, referencing the group’s past success. “We have sought to raise capital. The amount… is high and significant, but the capital-raising effort… is a significant step into the future.” He reminded shareholders that the team raised $2 billion in 2004, and Access Bank is now “much stronger” and “respected by the capital market.”

Commitment to Shareholders

Aig-Imoukhuede stressed the importance of all shareholders: “We are interested in shareholders; large, small continuing with us on our journey,everybody is going to participate in this capital-raising exercise.”

Allocation of Funds

Group CEO Bolaji Agbede explained the use of the raised capital. The majority will go to the banking subsidiary to meet regulatory requirements and support growth initiatives in African subsidiaries.

Speaking on the utilisation of the proceeds from the rights issue, Agbede said the banking subsidiary would be getting a huge chunk of it to meet the regulatory requirements of the apex bank.

Agbede said, “In terms of the proceeds from the rights issue which we are hoping to get about N365bn, we will be giving the bulk of it to the banking group to enable them to meet the CBN’s capital requirement.

“Part of the things that they are using it for is as working capital requirements for investment in African subsidiaries as some of the growth in the international subsidiaries that they have.

“If you look at all the headwinds that are coming along, it is important that you have a robust capital plan and this is one of those things that would help them. The other thing that we will also be doing is that some of the amount, not as much as the banking group of course would be going into the non-banking subsidiaries as well.”

Overall, Access Holdings’ digital approach signifies a commitment to transparency and inclusivity in this significant capital-raising effort.