December 29, (THEWILL) – The outstanding performance of Access Holdings, parent company of Access Bank Plc, by securing the full regulatory approvals of the Central Bank of Nigeria (CBN) and the Securities and Exchange Commission (SEC) of its recently closed Right Issue of 17,772,612,811 Ordinary Shares of 50 Kobo each at N19.75 Kobo per share (‘the Rights Issue’) will reconfigure Nigeria:s Banking landscape in 2025.
The foremost financial services holding has raised the target amount of N351,009,103,017.25, putting it ahead of its peers.
This development has positioned the Company’s flagship subsidiary, Access Bank Plc as the first bank to meet the Central Bank of Nigeria’s N500 billion minimum capital requirements for Banks with International Authorisation well ahead of the March 2026 regulatory deadline.
With the success, the Bank’s share capital would increase to N600 billion – N100 billion above the regulatory minimum requirement.
THEWILL recalls that on March 28, 2024, the CBN issued a directive to financially reshape the domestic money banks (DMBs), which spiked a theatre of competition among the operators.
In a direct memo, the CBN revised the capitalization requirements, setting new benchmarks for banks with international operations at N500 billion, national licences, N200 billion, and regional licences, N50 billion.
This directive, a crucial step towards a stronger banking sector, initiates a time-sensitive two-year journey that will start on April 1, 2024, and end on March 31, 2026.
Going by the data available, commercial banks in the country would require a combined N3.894 trillion to meet the new baseline capital requirements.
This will necessitate capital raising efforts to the combined tune of N3.894 trillion to meet the new baseline capital requirements. The capital raising would be from both domestic and international markets which the banks have already keyed into.
This will necessitate capital raising efforts to the combined tune of N3.894 trillion to meet the new baseline capital requirements. The capital raising would be from both domestic and international markets which the banks have already keyed into.
According to available data, under commercial banks with international authorization of N500 billion, in meeting with the new capital base, Access Bank, Fidelity Bank, FCMB, First Bank, Guaranty Trust Bank, Union Bank, United Bank for Africa and Zenith will be raising capital of N248.19 billion, N370.30 billion, N374.71 billion, N248.66 billion, N361.81 billion, N351.91 billion, N384.19 billion, and N229.25 billion respectively.
Also, CitiBank Nigeria Limited, Polaris Bank, Stanbic IBTC Bank, Standard Chartered Bank Limited, Sterling Bank, Titan Trust Bank, Unity Bank, and Wema Bank will be adding a new capital of N185.56 billion, N149.57 billion, N90.74 billion, N154.58 billion, N142.85 billion, N90.74 billion, N154.58 billion, N142.85 billion, N170.80 billion, N183.67 billion, and N184.87 billion respectively.
Committed to innovation leadership, stakeholders note that the Company is the first CBN licensed and regulated Financial Holding Company to successfully execute a fully digital Rights Issue embracing the power of technology to improve access to equity capital market.
By leveraging the NGX’s E-offer platform, the Company provided its shareholders with a seamless, efficient, and convenient subscriber experience significantly reducing barriers and democratising participation in the Rights Issue.
According to Benny Emmanuel-Bosah, a financial analyst, the spectacular performance of Access Holdings will reshape the banking landscape in the coming days, boosting competition and drive towards financial inclusion.
Sam Diala is a Bloomberg Certified Financial Journalist with over a decade of experience in reporting Business and Economy. He is Business Editor at THEWILL Newspaper, and believes that work, not wishes, creates wealth.
