Where Access Bank intends to channel N68bn rights issue
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IMAGE: R - Seyi Kumapayi, Chief Executive of Access Bank »
Shareholders of Access Bank plc will this month approve the raising of additional equity capital of N68 billion through a rights issue. The bank had in a notice for an extraordinary general meeting expected to hold in Lagos, also said with shareholders’ approval, the rights issue might be underwritten on terms to be determined by its directors, subject to obtaining approvals from the relevant regulatory authorities.
In view of this, the bank has explained that the N68 billion rights issue it is trying to raise would be channelled to telecom, oil and gas, manufacturing, general commerce and lending to retail sector, among others.
The bank also says it would focus on electronic branches and expansion specifically to other African regions such as Ghana, Rewanda and Zambia, among others.
“Today, there are some countries we have identified in terms of where we see growth opportunities. These countries are Ghana, Zambia and Rwanda.
“For these countries, just as we see growth opportunities in Nigeria, over the next two or three years, we are going to increase our investments in them to take care of the opportunities we see there,” according to the bank.
Other areas the bank intends to channel the funds to include replacing of obsolete equipment, replacing of some ATM merchine, enhance IT infrastructure, increase working capital, enhance lending among others.
Speaking at a media parley in Lagos, recently, Seyi Kumapayi, chief financial officer of the bank, lists some reasons why an investor should invest in Access Bank, saying because the bank is Tier 1 bank with robust financial indicators, enlarged resource base with strong upside potentials, credible leadership with a clear focus on value creation for shareholders, strong returns for investors – capital appreciation and dividend payout, attractive market price trading at a 0.9x discount to book value, strong corporate governance and shareholder management practices, window of opportunity in rapidly expanding and consolidating banking sector, and backdrop of stable economy.
Other reasons include demonstrated capacity in integrating and extracting value from acquisitions, actively traded stock with a robust shareholder base and track record of strong performance, and kept every promise made since 2002.
“Nigeria continues to be a compelling story with significant growth opportunity. Access Bank is fully embedded as a Nigerian Tier 1 bank and completed our transition to a large diversified financial institution. Enhancement of Tier 1 capital is imperative to enable us exploit the market opportunities and achieve our vision, while delivering superior shareholder value,” he says.
According to Kumapayi, Access Bank is poised for building and leveraging on resources and benefits of being a large diversified financial institution, as it is resolute to achieving the objective of becoming the world’s most respected African Bank.
Access Bank is firmly entrenched as a Tier-1 bank and among the top five banks in Nigeria with about 360 branches and over 1,000 ATMs.
Article Credit: Businessdayonline