Access Bank Plc is actively considering the issuance of dollar-denominated securities in the domestic market as part of its broader strategy to support expansion plans and adhere to capital requirements mandated by the Central Bank of Nigeria.
This was disclosed by the bank’s Managing Director, Roosevelt Ogbonna, during a press briefing in Lagos on Monday (yesterday, October 28).
According to Ogbonna, the bank intends to issue two distinct tranches of these securities, although specific financial targets for the capital raise were not revealed.
One tranche, he said, would focus on funding the development of financial institutions, while the other will be made available on the open market, adding that the tranche dedicated to the development of financial institutions is anticipated to be finalized and raised by the first half of 2025.
To structure these securities, Access Bank will use the federal government’s inaugural domestic sale of dollar-denominated bonds as a benchmark.
This landmark issuance, which attracted over $900 million in subscriptions, consisted of a $500 million bond that was issued at par with an annual coupon rate of 9.75%.
The bond achieved a remarkable subscription rate of 180%, indicating strong demand in the market.
The Ministry of Finance has hailed this bond issuance as a significant milestone for Nigeria, underlining the country’s aspirations to become a leader in financial innovation across Africa.
In addition to its plans for dollar-denominated securities, Access Bank recently completed a N351 billion rights issue in August, although detailed information about this programme has yet to be disclosed.
Looking ahead, Ogbonna shared ambitious plans for international expansion, revealing that Access Bank aims to establish a presence in the United States by the first quarter of 2025 or, at the latest, by 2026.
Additionally, the bank’s UK subsidiary is set to open an office in Hong Kong, reflecting its aggressive growth strategy.
Access Bank has been known for its proactive expansion approach, especially through mergers and acquisitions.
Earlier this year, the bank announced its intention to acquire the National Bank of Kenya, entering into a binding agreement with KCB Group Plc, the parent company of KCB Bank Ltd, which is the largest commercial bank in Kenya.
Moreover, just this month, Access Bank disclosed that it has secured a provisional license to establish a banking subsidiary in Namibia.
Ogbonna described this move as a strategic initiative aimed at bolstering intra-African trade and developing a robust banking network across Southern Africa.
Through these various initiatives, he enthused, Access Bank is positioning itself as a key player in the African banking sector, with a clear focus on expanding its reach and enhancing its service offerings both domestically and internationally.
