Access Holdings subsidiary Access Bank has become the first Nigerian bank to meet new capital requirements following successful completion of a N351bn (US$226.3m) rights issue.

An offer of 17.77bn new shares on a 1-for-2 basis at N19.75 each saw 43.5% take-up of rights, with excess subscription leaving the offer 105.8% covered.

The offer saw 21,141 shareholders exercise their rights in full for 5.59bn shares with 10,889 of these also applying for an additional 10.63bn shares. A further 635 investors purchased 2.14bn shares through traded rights.

Shares in the bank are up around 2.7% since the new year and comfortably clear of issue, closing at N24.50 on Friday.

The capital raise is a response to new rules from the Central Bank of Nigeria for a N500bn capital requirement for banks with international authorisation by March 2026. As a result of the rights issue Access Holding’s share capital will increase to N600bn.

Chapel Hill Denham was lead issuing house.

Results are still expected for capital increases for the same purpose by Fidelity Bank and United Bank for Africa.

Nigerian Breweries also completed its rights issue with 20.7bn shares allotted, representing 91.6% subscription from the 22.6bn rights shares offered.

As a result the brewer has raised N548.6bn to plug losses stemming from servicing debt.

The subscription window was previously extended from an October 11 end to October 18.

Shares were offered on an 11-for-5 basis at N26.50 each.

The new shares began trading on December 30 and on Friday closed above issue at N32.15.

Vetiva Advisory Services was lead issuing house with Stanbic IBTC Capital as joint issuing house.

Source: IFR