The Securities and Exchange Commission (SEC) on Monday endorsed Access Bank Plc\u2019s plan to raise N52.6 billion through a rights issue. The offer opened on Monday. <\/p>\n
The fund is to enable the bank expand its operations and strengthen its cash reserve. <\/p>\n
A statement on Monday explained that the bank would issue 7.63 billion shares of 50k each at N6.90 per share to its existing shareholders by way of rights issue. <\/p>\n
Shareholders had approved the board of director\u2019s proposal to raise additional equity at an Extra Ordinary Meeting (EGM) held last October. <\/p>\n
This, according to the statement is in line with the financial institution\u2019s five-year corporate plan to be one of the top three banks in the country and the most respected African bank. <\/p>\n
It said that the corporate strategy would be anchored on four pillars, namely capital, human capital, governance and risk management. The statement said the proceed would enable the bank to be more competitive and meet the funding needs of its blue-chip customers who meet its credit risk criteria. <\/p>\n
Also, the group managing director\/chief executive officer of Access Bank, Herbert Wigwe, said the proceeds from the offer would also be used to upgrade the bank\u2019s information technology platforms for better services. <\/p>\n
In addition, Wigwe said the proceeds would be used for upgrading the bank\u2019s branch networks and improving its working environment. <\/p>\n
\u201cThe funds raised would provide Access Bank with additional capacity to further consolidate its leading corporate banking business. <\/p>\n
\u201cIt will also form additional capital headroom to support our increasing market share in the SME and retail segments,\u201d Wigwe added. <\/p>\n
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