Access Bank Plc, Nigeria’s largest lender by assets, has successfully raised 351 billion naira ($228 million) through a rights offering, bolstering its capital reserves and paving the way for an ambitious expansion plan, Bloomberg reports.
The move ensures the bank surpasses a new regulatory capital threshold set by the Central Bank of Nigeria.
The newly raised capital brings Access Bank’s share capital to 600 billion naira, which is 20% above the minimum requirement for international banks operating in Nigeria, the bank stated in an emailed release on Wednesday. Both the Central Bank of Nigeria and the Securities Exchange Commission have given their regulatory approvals for the capital injection.
The funds will be pivotal in accelerating Access Bank’s expansion into new markets, including Morocco, Egypt, and the United States. The bank aims to double the proportion of its assets located outside of Nigeria by 2027. This rights offering is part of a broader plan to raise $1.5 billion to help the bank meet new regulatory requirements after the central bank mandated large commercial lenders to increase their capital tenfold to 500 billion naira by March 2026.
Access Bank, controlled by Access Holdings Plc, has been on an aggressive growth trajectory, expanding its operations into 23 countries. Earlier this month, the bank announced its agreement to acquire Bidvest Bank Holdings Ltd. in South Africa for approximately 2.8 billion rand ($159 million), further solidifying its presence in that key market.
The bank’s shares have seen positive movement this year, rising 6.7% in Lagos, following a significant doubling in value throughout 2023.
