Access Bank Plc has secured the Central Bank of Nigeria’s (CBN) authorisation for N500 billion minimum capitalisation for international authorisation, becoming the first to meet the apex bank’s threshold well ahead of the March 2026 regulatory deadline.
The authorisation follows the approval of its recently closed Right Issue of 17,772,612,811 Ordinary Shares of 50 Kobo each at N19.75 Kobo per share, raising the target amount of N351,009,103,017.25 by the apex bank and the Securities and Exchange Commission (SEC)
The rights issue’s success has thus pushed the bank’s share capital to N600 billion, N100 billion above the regulatory minimum requirement.
This is another first in the bank’s commitment to innovation leadership, being the first CBN-licensed and regulated Financial Holding Company to successfully execute a fully digital Rights Issue embracing technology to improve access to the 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.
Speaking on the successful offer, the Holding Company’s Chairman, Aigboje Aig-Imoukhuede, said “The Access brand has always resonated strongly with the local and international capital markets. Since 2004, Access Bank has raised billions of dollars in capital to meet successive CBN recapitalisation directives. We are pleased that we are the first to breast the tape. The success of the Rights Issue demonstrates the resilience of Nigeria’s capital market and reinforces our shareholders’ confidence in the present value and potential of our Company.
He acknowledged the invaluable and strong support of the CBN and the SEC who both played crucial roles in ensuring the integrity and efficacy of our Rights Issue exercise.
“We are also grateful to our valued shareholders, whose loyalty to the Access brand and vision for over 22 years has been most inspiring and unwavering. As we enter into the new year, we are well-positioned to leverage our enhanced capital base to deliver sustainable value for our stakeholders,” he said.
The CBN on Thursday, March 28, 2024, unveiled new minimum capital requirements for banks, pegging the minimum capital base for commercial banks with international authorisation at N500 Billion while commercial banks with national authorisation are N200 Billion, and the new requirement for those with regional authorization is N50 Billion.
The apex bank also set the new minimum capital for merchant banks at N50 Billion, while non-interest banks with national and regional authorisations are N20 Billion and N10 Billion, respectively.
A circular signed by the Director, the Financial Policy and Regulation Department, Haruna Mustafa emphasised that all banks are to meet the minimum capital requirement within 24 months commencing from April 1, 2024, and terminating on March 31, 2026.
According to the circular, the move, initially disclosed by the CBN Governor, Olayemi Cardoso at the Annual Bankers’ Dinner in November 2023, was to enhance banks’ resilience, solvency, and capacity to continue supporting the growth of the Nigerian economy.
To enable them to meet the minimum capital requirements, the CBN urged banks to consider injecting fresh equity capital through private placements, rights issues and/or offers for subscription; Mergers and Acquisitions (M&As); and/or upgrades or downgrades of license authorisation.
Furthermore, the circular disclosed that the minimum capital shall comprise paid-up capital and share premium only, stressing that the new capital requirement shall not be based on the Shareholders’ Fund.
“Additional Tier 1 (AT1) Capital shall not be eligible for meeting the new requirement. Notwithstanding the capital increase, banks are to ensure strict compliance with the minimum capital adequacy ratio (CAR) requirement applicable to their license authorisation.
“In line with extant regulations, banks that breach the CAR requirement shall be required to inject fresh capital to regularise their position,” it added.
The CBN circular said the minimum capital requirement for proposed banks shall be paid-up capital, adding that the new minimum capital requirement shall apply to all new applications for banking licenses submitted after April 1, 2024.
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