Business Access Bank's N52.6bn Rights Issue Approved by SEC

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LequteMan

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Nigeria- The Securities and Exchange Commission (SEC) has approved plans by Access Bank Plc to raise N52.6 billion through rights issue for its expansion and stronger cash reserve, according to a statement released by the bank on Monday in Lagos.

According to the statement, the bank would issue 7.63 billion shares of 50k each at N6.90 per share to its existing shareholders by way of rights issue.

Shareholders of the bank had approved the board of directors’ proposal to raise additional equity at an Extra Ordinary Meeting (EGM) held in Lagos on Oct. 13, 2014.

The proceeds raised would enable the bank to be more competitive and meet the funding needs of its blue-chip customers who meet its credit risk criteria.

It quoted Mr Herbert Wigwe, the bank's Group Managing Director as saying that proceeds from the offer would also be used to upgrade the bank’s information technology platforms for better services.

Wigwe, according to the statement, added that the proceeds would be used for upgrading the bank's branch networks and improving its working environment.

“The funds raised would provide Access Bank with additional capacity to further consolidate its leading corporate banking business.

“It will also form additional capital headroom to support our increasing market share in the SME and retail segments,” it quoted Wigwe as saying.



#Nigeria #SEC #AccessBank

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