Access Holdings, Fidelity Bank, others gear up for major capital raise

Access Holdings and other major banks in the country are in a race to shore up their capital, positioning themselves to take advantage of economic expansion opportunities and secure significant deals that may arise in the new dynamic.

Already, Access Holdings, Fidelity Bank and other banks are taking concrete steps to attract potential investors.

Access Holding has taken the lead, having announced in IPMAN the successful completion of a $300 million (N240 billion assuming $800/$1) capital investment into its flagship subsidiary, Access Bank Plc.

Following Access Holding’s move, other banks in Nigeria have been prompted to assess their own capital needs and adopt proactive measures.

Fidelity Bank last week announced plans to raise capital via a combination of a public offer and a rights issue. At the current share price of N7.3, the sales could fetch the bank fresh capital of about N96.3 billion.

FBN Holding is seeking the approval of its shareholders ahead of its August 15 annual general meeting.

The capital raise transaction shall be by way of a Rights Issue, on such terms and conditions and on such dates as may be determined by the Directors, subject to obtaining the approvals of the relevant regulatory authorities.

Market experts believe that several key drivers, including macro-economic headwinds underpin the surge in capital-raising activities among banks to fortify their capital base to absorb potential losses and maintain healthy balance sheets.

They also revealed that under a new CBN governor, banks will face increased scrutiny of their financial books, and the heightened oversight may lead to loans that were previously classified as performing to be reevaluated and potentially disclosed as non-performing upon closer examination.