Access Holdings injects $300m into banking subsidiary to execute African expansion strategy

By Business A.M.

Access Holdings has injected a $300 million capital investment into its subsidiary, Access Bank for the execution of  its African expansion strategy.

The tier-1 financial institution, in a notice signed by Sunday Ekwochi, the company secretary, said the proceeds of the investment will supplement the capital needed to offer financial services in its markets.

“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.

The Investment, approved by the Central Bank of Nigeria, takes 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.

“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,” the bank stated.

Commenting on the investment, Herbert Wigwe, group chief executive of Access Holdings said the leading financial institution in the continent remains foresighted in its approach towards its growth and capitalization needs.

According to Wigwe, the 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,” he added.