Shareholders Ratify Access Bank’s Plan to Raise N100billion Fresh Capital

Shareholders of Access Bank Plc on Wednesday, April 27, gave their approval to the board of the bank to raise up to N100 billion in new capital as part of plan to optimize the balance sheet and capital structure of the bank.

At the 27th annual general meeting in Lagos on Wednesday, shareholders authorized the bank to raise additional debt capital of up to N100 billion through the issuance of non-convertible loans, notes, bonds and any other instruments either as a stand-alone issue or by establishing a debt issuance programme.

The resolution empowered the board of directors to undertake the new debt issue by way of a public offering, private placement, book building process, reverse call enquirer or any other method or combination of methods, in such tranches, series or proportions and at such dates, coupon or interest rates within such maturity periods and upon such terms and conditions as may be determined by the board of directors subject to obtaining the requisite approvals of the relevant regulatory authorities.

The board of the bank explained that the new capital issue was in line with the strategic growth objectives and prudent risk management of the bank with the overall goal of enhancing the bank’s funding, capital base and profitability through an efficient capital structure.

“This need is underscored by the growing scale of regulatory headwinds and economic realities which have further put demands on capital. This is further strengthened by the fact that from 1 July 2016, the Capital Adequacy Ratio for Systemically Important Banks (SIBs) is being increased from 15 per cent to 16 per cent,” the board stated.