Access Bank Plc, Nigeria’s leading lender by assets, has successfully raised 351 billion naira ($228 million) through a rights offering designed to surpass a new regulatory capital requirement as part of its growth strategy.

The bank’s share capital now stands at 600 billion naira, exceeding the minimum threshold for international banks operating in West Africa by 20%, according to an email statement from Access Bank released on Wednesday.

Read: Nigeria’s Access Bank aims to enter ranks of biggest in Africa

This capital influx has received approval from both the Central Bank of Nigeria and the Securities Exchange Commission, as stated by the bank.

The capital increase will empower Access Bank, under the management of Access Holdings Plc, to expedite its expansion into new markets like Morocco, Egypt, and the United States, with ambitions to double the share of its assets outside Nigeria by 2027.

The rights offering is part of Access Bank’s larger goal to secure $1.5 billion to meet regulatory standards, following a directive from the central bank requiring major commercial banks to increase their capital to 500 billion naira by March 2026.

The bank currently has a presence in 23 countries, following a robust expansion into new markets.

Access Bank’s shares have appreciated by 6.7% in Lagos this year, after more than doubling in value in 2023. Earlier in the month, the bank initiated steps to acquire Bidvest Bank Holdings for around R2.8 billion ($159 million) to enhance its footprint in South Africa.

© 2024 Bloomberg

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