Securing $300 million poses no challenge for Access Bank, asserts Aig-Imoukhuede

YEPS
3 Min Read
Aigboje Aig-Imoukhuede

Aigboje Aig-Imokhuede, the astute Chairman of Access Holdings Plc, exudes confidence in Access Bank’s ability to secure $300 million in capital, buoyed by its robust market standing and unwavering support from shareholders.

Speaking to the News Agency of Nigeria (NAN) during Access Holdings’ second annual general meeting in Lagos, Mr. Aig-Imokhuede emphasized the bank’s readiness to meet the Central Bank of Nigeria’s (CBN) directive on capital adequacy. CBN’s mandate requires commercial banks with international authorization to bolster their capital base to N500 billion, with national banks to N200 billion. Similarly, non-interest banks with national and regional authorization are to increase their capital to N20 billion and N10 billion, respectively, by March 31, 2026.

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In response, Access Bank’s shareholders, at the AGM, unanimously endorsed the group’s ambitious plan to establish a capital-raising program of up to $1.5 billion. They also approved a subset initiative to raise up to N365 billion specifically through a rights issue of ordinary shares to its shareholders. The proceeds from this initiative will support the bank’s ongoing working capital needs, including funding organic growth for its banking and non-banking subsidiaries.

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Reflecting on the bank’s journey, Aig-Imokhuede highlighted Access Bank’s resilience in previous recapitalization exercises. He recalled the bank’s remarkable achievement between 2004 and 2007, where they raised $2 billion of common equity capital, demonstrating their capacity to navigate such challenges successfully.

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Expressing confidence in shareholders’ support, Aig-Imokhuede emphasized the importance of inclusivity, ensuring that both large institutional shareholders and individual investors are carried along in the process. He emphasized shareholders’ belief in the company’s performance and the potential returns following the capital-raising exercise.

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Regarding the CBN’s recapitalization policy, Aig-Imokhuede hailed it as a prudent and sensible regulation, fully endorsed by Access Bank as a group.

The impressive full-year results for the period ended December 31, 2023, further underscore Access Bank’s strength, with a 335 percent increase in pre-tax profit, an 87 percent surge in gross earnings, and a remarkable 306 percent growth in profit after tax compared to the previous year, solidifying its position as a formidable player in the financial sector.

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