In a strategic move to bolster its capital base and fund international expansion, Access Holdings Plc is set to raise approximately N40 billion through a private placement of shares to selected investors. This initiative is a direct response to the Central Bank of Nigeria's (CBN) stringent recapitalisation requirements for commercial banks, with a compliance deadline set for March 2026.
Details of the Proposed Capital Raise
The plan received initial approval during an Emergency General Meeting held on Thursday, December 18, 2025. According to the proposal, the holding company intends to issue new shares at a price of N20.25 per share to between one and two cornerstone investors. The final terms, including the exact structure and timetable, will be determined by the company's board, which has been empowered to engage with potential subscribers.
This private placement could see the issuance of up to 2 billion new shares, which would increase the group's total outstanding shares to roughly 55.3 billion. Access Holdings, with a current market capitalisation of about N1.1 trillion, must still secure the necessary regulatory approvals from both the CBN and the Securities and Exchange Commission (SEC) before the offer can proceed.
Drivers: Recapitalisation and Strategic Growth
The capital raise is a dual-purpose endeavour. Primarily, it supports the group's compliance with the CBN's revised minimum capital thresholds. Access Bank, the group's flagship banking subsidiary, had already met the N500 billion requirement for an international banking licence by December 2024 after a successful N351 billion rights issue. This new injection of funds further solidifies the group's capital position ahead of the regulatory deadline.
Secondly, the group explicitly plans to utilise foreign-currency instruments to fuel its growth strategy. This approach was outlined last October during the presentation of its medium-term roadmap in Lagos. Roosevelt Ogbonna, CEO of Access Bank's commercial banking arm, indicated that the issuance might be executed in two phases, potentially starting with development finance institutions before a broader market offering.
Context and Broader Implications
The move places Access Holdings among Nigerian banking groups proactively addressing the recapitalisation mandate. Institutions that fail to raise sufficient capital risk being forced into mergers or other less favourable options to remain operational. The private placement route allows the group to target specific investors and secure foreign currency, which is crucial for its expansion into new African and international markets.
This development follows the recent news of Access Bank's acquisition of a 76% controlling stake in AfrAsia Bank Limited in Mauritius. That deal, approved by Mauritian regulators, is part of the group's concerted effort to widen its operational network and strengthen its pan-African presence. The planned N40 billion raise provides further financial muscle to execute such ambitious international plans while satisfying domestic regulatory demands.
The coming months will be critical as the group finalises terms with investors and navigates the regulatory landscape, with the eyes of the market watching to see how major Nigerian financial institutions bridge their capital gaps.
