Nigeria: Post-Merger Access Bank Eyes U.S.$200 Million Additional Capital
Access Bank Plc is planning a rights issue to raise additional capital of about $200 million next year, when it concludes its deal with Diamond Bank Plc, Financial Times has said.
The proposed fund raising, according to the paper, is to keep its capital well above regulatory requirements.
Although THISDAY's efforts to confirm this development were unsuccessful as officials of the bank declined to comment last night, FT quoted bankers handling the rights issue to have said the move would enhance the new entity's capital base and business development.
The proposed business combination deal between the two banks will result to a combined entity with total asset size of N6.108 trillion.
This, according to the third quarter unaudited results of both banks for the period ended September 30, 2018, means that the new combined entity will have the largest asset size among the banks in the country, thereby displacing Zenith Bank Plc and Guaranty Trust Bank Plc, respectively.
While Zenith Bank reported total assets of N5.618 trillion in its unaudited results for the third quarter of 2018, GTBank's stood at N3.443 trillion.
Similarly, when the merger deal is concluded, the new institution would hold total customer deposits of N3.543 trillion. This is slightly higher than that of Zenith Bank, which was N3.275 trillion as at the end of September 2018, as well as GTBank's total customer deposit of N2.239 trillion as at the end of the third quarter of 2018.
In addition, the loan book of the new entity would be N2.703 trillion, higher than that of GTBank, which was N1.270 trillion as at September 30, 2018, and that of Zenith Bank Plc which was N2.066 trillion as at September 30, 2018. The transaction has been approved by the Central Bank of Nigeria (CBN). Read more on All Africa.
Source: All Africa