One of the nation’s financial institutions, Access Bank Plc is planning to raise its capital by way of rights issue.
The Bank has been meeting with domestic investors over the past week to gauge interest in a possible rights issue of N60-70 billion ($369-$431 million) by the fourth quarter, according to reports.
Access Bank , which raised a $400 million in Eurobond in June, wants to bolster its core capital, the fund manager who attended the meetings in Lagos told Reuters, declining to be named. Access Bank was also discussing with investors in Abuja.
Chief Executive Herbert Wigwe told an analysts’ conference call last week while presenting the bank’s half-year results that he anticipated banks would need to raise more capital as a result of the new regulations.
A source at Access Bank said the bank was meeting with stakeholders and would determine the amount of the fundraising after the meetings.
It is believed that, one of the bank’s rivals, Diamond Bank, which has just concluded a 50.3 billion naira rights issue, issued a $200 million in Eurobond in May. Stanbic IBTC Bank has also announced plans to raise N30 billion before the end of the last quater.