Access Holdings Chairman Aig-Imoukhuede breaks down capital raising plans

Access Holdings Chairman, Aigboje Aig-Imoukhuede, recently disclosed the group's intention to raise $1.5 billion over the next five years, underscoring the financial institution's ambitious growth strategy. In an exclusive interview with CNBC Africa's Kenneth Igbomor, Aig-Imoukhuede emphasized that the decision to embark on a rights issue aligns with the longstanding relationship the company values with its shareholders over the years. The move towards capital raise comes amid a robust performance by Access Bank, outpacing the average growth trajectory of Nigerian banks. Aig-Imoukhuede attributed this success not solely to currency devaluation but also highlighted the benefits of scale and diversification. Access Bank's extensive retail base, spanning across Africa, Europe, and beyond, has provided a stable revenue stream contributing to its impressive financial results. The Chairman expressed satisfaction with the bank's performance and highlighted the importance of valuing its shareholders, both large and small, in the capital raising strategy. The decision to opt for a rights issue was driven by the desire to allow existing shareholders the opportunity to participate in the capital raise, particularly during a period when Nigerian banks are trading below their book value. Aig-Imoukhuede stressed the proactive approach Access Bank takes towards capital management, emphasizing a deliberate and robust strategy guided by five-year planning cycles. The $1.5 billion capital raise plan includes a rights issue component of up to $365 billion, aimed at meeting the regulatory capital requirements set by the Central Bank. Aig-Imoukhuede's past experience in overseeing successful equity raises for Access Bank instills confidence in the current capital raising efforts, with a focus on engaging the bank's broad retail shareholder base. Looking ahead, Aig-Imoukhuede highlighted the growth prospects of Access Holdings' subsidiaries, such as Hydrogen and Access Pensions, within the broader ecosystem of the bank. As a holding company, Access Holdings aims to deliver exceptional returns to its shareholders, with a strategic focus on establishing Access Bank as Africa's premier financial institution. The company also plans to explore non-banking businesses, leveraging digital technology and other opportunities to enhance its offerings and drive further growth. Aig-Imoukhuede teased forthcoming announcements on the group's expansion plans, underscoring the commitment to cementing Access Bank's position as a leader in the African banking landscape.