Monday, October 6, 2014

Why we’re raising fresh funds —Access Bank

 
By NKIRUKA NNOROM

Access Bank Plc has said that its quest to raise additional funds from the capital market is borne out of the need to enhance its Tier 1 Capital and also take advantage of emerging opportunities in the economy.

Group Managing Director/CEO, Mr. Herbert Wigwe, made the disclosure at a parley with finance correspondents in Lagos.
Access Bank had revealed plans to raise N68 billion via Rights Issue from its existing shareholders.

Represented by the bank’s Chief Finance Officer, Mr. Seyi Kumapayi, Wigwe stated that opportunities exist in the Power, Oil & Gas and Agric sectors of the economy, which as at date are largely under-funded by Deposit Money Banks, DMBs, saying that funds from the capital raise would enable the bank to provide the necessary support to the sectors.

“Access Bank is fully embedded as a Nigerian Tier 1 bank and completed our transition to a large diversified financial institution. However, enhancement of our Tier1capital is imperative to enable us exploit the market opportunities and achieve our vision whilst delivering superior shareholder value,” he said.

He indicated that the bank needs to undertake further branch expansion, as well as support its working capital with proceeds from the Rights.

Wigwe stated that the bank is poised to build and leverage on resources and benefits of being a large diversified financial institution to achieve its objective of becoming the world’s most respected African bank by 2017.

According to him, the bank has a track record of strong performance and has kept every promise it made since 2002, while it has enjoyed ‘A’ rating from various rating agencies.

Typically, he said that from 2002 to 2007, the bank was ranked among the top 10 banks in Nigeria and a dominant trade finance bank, as well as being a top three foreign exchange and money market bank.

From 2007 to 2012, he said the bank was ranked among the top five financial services group, was a reference point of service delivery, leading e-business support bank, an employee of choice in Africa, a reference point for corporate governance and also attained high independent credit rating among other achievements within the period.

In line with the objective of becoming the best respected African Bank by 2017, Wigwe, said that Access bank has set a goal of becoming achieving top three position by all financial metrics and becoming a reference points for technology within the set period.

Additionally, he said that the bank is poised to become a leading project and structured finance bank and the best treasury and financial market bank in the country.

Encouraging investors to take up their Rights, he said that the bank has demonstrated the capacity in integrating and extracting value from its various acquisitions and is also one of the most actively traded banking stocks in the Nigerian Stock Exchange, NSE.

He said that the bank also prides as investors friendly bank having been able to deliver impressive return to investors in terms of capital appreciation and dividend payment.

According to him, the bank has a credible leadership with clear vision of value creation for shareholders.
 
-Culled from : http://www.vanguardngr.com

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