The investment takes the form of a Tier 1 capital qualifying mandatory convertible instrument
by fabulous reporter
Access Bank, the commercial banking unit of Access Holdings Plc, received $300 million as capital investment from the parent company to further its expansion move within Africa, Nigeria’s biggest lender by assets announced Tuesday.
“The investment takes the form of a Tier 1 capital qualifying mandatory convertible instrument and is expected to improve the bank’s shareholders’ funds and total ratios,” Access Holdings said in a statement.
The Central Bank of Nigeria has endorsed the investment, it added.
Access Holdings is expanding into new markets on the continent and branching out into new businesses permitted by its holding company licence in pursuit of its strategy to be “Africa’s gateway to the world.”
In January, Access Bank announced that its bid to take over Kenya’s Sidian Bank had fallen through after at least half a year in the works.
The group is nursing the hope that its newly launched payments subsidiary Hydrogen will be able to settle one out of every three transactions that come into the continent in the nearest future.
“As a leading financial institution in the continent, we remain foresighted in our approach to our growth and capitalisation needs,” CEO Herbert Wigwe said.
“This investment is a capstone initiative following the US$500 million Additional Tier 1 capital raised by the Bank in 2021 and advances its vision to be the World’s Most Respect Bank.”
The group’s total assets, as of the end of September 2022, stood at N13.5 trillion, 14.6 per cent higher than one year prior.