Access Holdings Plc has announced fresh investment of $300 million in its subsidiary, Access Bank Plc for the execution of its African expansion strategy.
Access Holdings in a notice signed by the company secretary, Mr Sunday Ekwochi, and filed to the Nigerian Exchange (NGX) Limited on Tuesday, said the capital investment would give its banking subsidiary the funds needed to offer financial services in its markets.
It said the funds take “the form of a tier 1 capital qualifying Mandatory Convertible Instrument and is expected to improve the bank’s shareholders funds and total capital ratios.”
The Central Bank of Nigeria (CBN), which regulates the banking industry in the country was said to have approved the $300 million investment in Access Bank.
Group chief executive of Access Holdings, Mr Herbert Wigwe, said “As a leading financial institution on the continent, we remain foresighted in our approach to our growth and capitalisation needs. This investment is a capstone initiative following the $500 million additional tier 1 capital raised by the bank in 2021 and advances its vision to be the World’s Most Respected African Bank.
“Access Holdings benefits from this non-dilutive approach to raising growth capital as we continue to invest in initiatives geared towards delivering our vision of building a globally connected community and ecosystem inspired by Africa for the world through disciplined growth and diversification.”