Access Holdings Plc will ask shareholders to approve a plan to raise as much as N40 billion through a private placement as Nigeria’s biggest financial group by asset moves to bolster capital for expansion across banking, payments, insurance and pension businesses.
The lender said it will hold an extraordinary general meeting on Dec. 18 to vote on resolutions authorising the fundraising as well as an increase in issued share capital to support the transaction.
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Under the proposal, the group plans to expand its issued share capital to N27.65 billion from N26.66 billion by creating 1.98 billion new ordinary shares of 50 kobo each, lifting the total number of shares outstanding to 55.29 billion.
The new shares will rank pari-passu with existing stock and will be offered to selected investors at N20.25 per share, or at another price determined by the board.
The planned private placement allows the board to allot the new shares in one or more tranches and determine the structure, valuation and timeline of the transaction, according to the notice. Management is also empowered to negotiate with prospective investors and appoint advisers needed to execute the capital raise.
Access Holdings said the exercise would be conducted in compliance with rules set by the Securities and Exchange Commission, the Nigerian Exchange Ltd., and directives of the Central Bank of Nigeria, reflecting regulatory requirements applicable to licensed financial holding companies.
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Nigeria’s banking groups have increasingly turned to fresh equity capital as tougher regulatory capital thresholds, currency volatility and rapid balance-sheet expansion place pressure on buffers needed to support lending growth.
The private placement would provide Access additional headroom for expansion across its core banking franchise while deepening its footprint in payments, insurance and pensions.
The EGM will be held virtually, with shareholders also asked to ratify steps already taken by the board in preparation for the fundraising, including approvals sought from regulators and documentation related to the transaction.