Connect with us

Business

Access Holdings’ Shareholders Unanimously Back Capital Raising Plan, Hail Aig-Imoukhuede’s Return as Chairman…

Published

on

Disability inclusion: Access Holdings, NBDN advocate for more inclusiveness

Access Holdings’ Shareholders Unanimously Back Capital Raising Plan, Hail Aig-Imoukhuede’s Return as Chairman…

· Re-elect Olusegun Ogbonnewo, Ojinika Olaghere as a Non-Executive Directors

Access Holdings’ Shareholders Unanimously Back Capital Raising Plan, Hail Aig-Imoukhuede’s Return as Chairman…

The shareholders of Access Holdings Plc (“Access Holdings” or “the Group”) at the 2nd Annual General Meeting (AGM) held on Friday, April 19, 2024, unanimously backed the Group’s plan to establish a capital raising programme of up to US$1.5 billion as well as the subset initiative to raise up to N365 billion, specifically, through a Rights Issue of ordinary shares to its shareholders.

The proceeds of the Rights Issue would be used to support on-going working capital needs, including organic growth funding for its banking and other non-banking subsidiaries.

The shareholders also ratified the appointments of Aigboje Aig-Imoukhuede, Olusegun Ogbonnewo, and Ojinika Olaghere as Non-Executive Directors.
The appointment of Aig-Imoukhuede as the Chairman of Access Holdings was praised by the shareholders, who pointed to his rich history of success with the institution, having transformed it into Nigeria’s biggest lender by market value alongside Herbert Wigwe. Aigboje’s leadership was instrumental in driving the institution’s growth during the 2004 recapitalisation of the banking industry led by the Central Bank of Nigeria (CBN) under the leadership of its former Governor, Prof. Charles Soludo.

“We are thrilled with Aigboje Aig-Imoukhuede’s return to the role of Chairman. His proven track record, experience, and strategic insights position him as the ideal leader to steer Access Holdings towards meeting its lofty targets. During his tenure as CEO, particularly during the recapitalisation directive by the CBN, he steered Access Bank to raise an impressive $2 billion in capital, and this demonstrates his capacity to, once again, lead Access Holdings towards successfully achieving the objectives of our planned Capital Raise and Rights Issue targets,” said Chief Sunny Nwosu, Chairman Emeritus of the Independent Shareholders Association of Nigeria (ISAN).

In line with the Group’s strong financial performance, the payment of a final dividend of N1.80 kobo per every N0.50 Kobo ordinary share for the 2023 financial year was approved, marking a 28 per cent improvement from the corresponding period in 2022.

The Group’s full-year results for the period ending December 31, 2023, showcased an impressive 335 per cent increase in pre-tax profit to N729 billion from N167.68 billion in 2022. The Group also experienced an 87 per cent surge in gross earnings to N2.59 trillion from N1.39 trillion in 2022 and reported a remarkable 306 per cent growth in profit after tax to N619.32 billion, from N152.20 billion in 2022.

Commencing in the second half of 2024, Access Holdings’ global expansion strategy will enter the consolidation and efficiency phase, aligning with its five-year plan to accelerate the attainment of its 2027 strategic objectives. The Group remains focused on driving sustainable growth, and delivering value to its shareholders even as it continues to build a globally connected community and ecosystem, inspired by Africa, for the world.

Business

Ecobank Reiterates Commitment To Help Adire Industry Leverage AfCFTA…

Published

on

By

Ecobank Reiterates Commitment To Help Adire Industry Leverage AfCFTA…

Ecobank Reiterates Commitment To Help Adire Industry Leverage AfCFTA…

 

… Gets Commendation from Ogun State Government

Ecobank Nigeria has restated its commitment to ensure that Nigeria’s Adire industry leverages the potential of the African Continental Free Trade Agreement (AfCFTA).

Speaking at the third edition of the annual Ecobank ‘Adire Lagos Experience’ in Lagos, the Executive Director, Commercial Banking, Ecobank Nigeria, Kola Adeleke, said the bank is committed to helping businesses exhibiting at the fair explore opportunities available through the Africa trade pact.

The event which is holding at the ultra-modern Ecobank Pan African Centre (EPAC), has seen over 100 exhibitors showcase locally processed adire attires made by indigenous designers.

“After the program, these 100 merchants, we are going to continue partnering with them. We are going to support them to build capacity. We are going to even use the opportunity for them to improve the quality of whatever they are producing for export purposes. Because ultimately, our goal is to ensure that Adire becomes like an African brand with global acclaim.
“This is very unique for us as an organization because it will help to grow our nation’s economy as we see the export potential there. We are going to profile all these merchants on the Ecobank single market trade hub and then position them so that they will be able to export their products to other countries in Africa and beyond, “he said.

Mr. Kola noted that Adire Lagos’ exhibition is part of the efforts of the bank to support and project the creative industry in the country, adding that as part of a Pan African bank which operates in 33 countries of Africa, Ecobank Nigeria will always look out to support various productive initiatives and the Adire exhibition fits into this goal.

Ecobank Reiterates Commitment To Help Adire Industry Leverage AfCFTA…

(L-R) Kola Adeleke, Executive Director, Commercial Banking, Ecobank Nigeria; Bimbola Wright, Director, Ecobank Nigeria; Emmanuel Ikazoboh, Former Chairman, Ecobank Transnational Inc.; Carol Oyedeji, Deputy Managing Director; Dr. Adesegun Akin-Olugbade, OON, Chairman, Luwaji Advisory & Former General Counsel, AFC & ADB.; Titi Olujobi, Director, Ecobank Nigeria; and Kenneth Okere, Company Secretary, Ecobank Nigeria at the Ecobank Adire Exhibition in Lagos.
Meanwhile, the Commissioner for Culture and Tourism, Ogun State, Dr. Fagbayi Oluwasesan, has commended Ecobank for promoting Adire culture to help improve the sector.

 

Speaking during his visit to the fair, Fagbayi, said: “The fabric is synonymous to Ogun state. We are the custodians of Adire. It is an indigenous textile from Ogun State and we have to protect it. That’s why we are happy with Ecobank for what they’re doing today, assisting us to showcase what God has given to us, protecting it, and also telling the world that this is what is good for us to be using as fabric.”

He also said that the Ogun State government has commenced measures to address the challenge of imported adulterated Adire fabric, which poses a major threat to the local Adire industry.

“The State House of Assembly have commenced steps, through our ministry, to curb the excesses or inflow of Chinese adulterated fabric.

“First and foremost, we don’t need to address it as ‘Adire Chinese’. It is never Adire because it is a print on its own that doesn’t pass through the process of how the fabric is made. The original fabric is made manually, and it passes through nine stages before it is made.
“We are working on that and a committee has been set up with the approval of the Governor that they should go to the market, you know, look at what we can do and come up with a law, probably, though we may not have the capacity to ban it outrightly.
“We’re also taking it up with the National Assembly; the Representative Abeokuta South Federal Constituency has also raised a Bill at the National Assembly that has passed its second reading now. By the time that is done probably we will have the backing of the federal government in banning this adulterated fabric out rightly.”

Continue Reading

Business

Fidelity Bank started recapitalisation before CBN made it compulsory –Amuchie

Published

on

By

Fidelity Bank started recapitalisation before CBN made it compulsory –Amuchie

Fidelity Bank started recapitalisation before CBN made it compulsory –Amuchie

Recently, the Central Bank of Nigeria (CBN) raised the capital base of commercial banks and set the tone for recapitalisation. But one bank that was already working on recapitalisation prior to that is Fidelity Bank Plc.

Revealing this in an interview, Fidelity Bank’s Executive Director, Chief Operations and Information Officer, Mr. Stanley Amuchie, said the bank had in August last year got its shareholders’ nod to recapitalise, only for the CBN to unveil the programme in March 2024.

He said Fidelity Bank was ahead of its competitors in knowing the right thing to do at every point in time.

He spoke on this and other things.

With CBN recapitalisation programme, which affects all banks, where you are on this?

The Central Bank of Nigeria, on March 28, 2024, announced recapitalisation for the banking industry. If you look at Fidelity Bank, we got the approval of our shareholders on August 11, 2023. That shows that, as a bank, we understand our business as well as the environment. We have done what we call Capital Needs Assessment. Based on that, therefore, we went out to seek approval of our shareholders to raise capital. And what we are trying to do is to issue 10 billion units of shares in public offering at N9.75k per share; and 3.2 billion units of shares by way of right issue to existing shareholders at N9.25k per share. That process has been in play. The signing ceremony is a step towards opening to the market. And that was why, a few days ago, on June 5, we had the signing ceremony. Of course, the processes involves getting all the parties together.

Who are these parties?

The parties will be the people at the issuing houses, the receiving banks, the reporting accountants and then the stockbrokers. Those are the people that will make up the parties to the offer. We have gone through the processes of getting all the people together, as well as prepared documents for the Securities and Exchange Commission (SEC) for approval. We have also secured approval of the Nigeria Stock Exchange Commission (NSEC) and that of the Nigeria Exchange Limited (NGX) and then held the signing ceremony. The next step is to secure the final approval of SEC to open the offer to the market. And we hope to open the offer on June 20 this year. It will be open for 28 working days. What it means is that, we will close on July 29, 2024.

It looks like you want to go into the market before others and ensure you get your shares before the competition gets stiff…

Like I said, we started this process earlier, because ours is based on strategy. This is because we are looking at our current business. We believe we had enough capital to do our business but we are looking at growth, which is why we are projecting growth. We believe that, if you want to grow, you must have what it takes. I want to liken capital to what oxygen is to human beings. If you don’t have enough oxygen, you will suffocate. Therefore, we looked at the growth process and what we needed to do, hence we started ours quite early. We didn’t wait. Remember, we were not reacting to CBN’s pronouncement. We have been very proactive about our capital base. That is what we are doing.

Ir seems there are some jitters, maybe not so much, but when the news about the revocation of Heritage Bank’s license came out, banking stocks dropped, people were asking questions, and now you are going to the market. How do you convince the people that Fidelity Bank is safe?

Let me say this again. Fidelity Bank Plc is very safe. This is a bank that has shown capacity and growth over the years. For instance, in the last five years, if you look at the stock, which is what we are talking about, you will appreciate the value our bank has created between May 2019 and May 2024. The value or the share price of Fidelity has grown by 507 percent or at N1.68k as at 31st of May, 2019, to N10.20k as at 31st of May, 2024. That is 507 per cent growth. What this means is that we have grown at an average of over 100 percent for every year.

 

You hit a new record high, over one hundred and four thousand, for the all-share index?

Yes. For all that has happened, you will see that our bank grew more than two times the all-share index. Even if you talk about the banking index, which is what tracks the value of shares of the banking industry, our bank did four times.

What are the chances of mergers, or are you looking at acquiring some banks?

Everything is on the table. For now, what we are trying to do is to get additional capital at the level where we are today. And by the time we get that, we will be in a very good position to look at what is ahead of us.

What of acquiring banks that need help, which will also increase your branches and assets?

Those are very possible. Like I said, everything is on the table for us. Our plan is to put ourselves in that position where you can think clearly and then be able to take any decision. And if we need to acquire, there has to be value. We will look at those who bring that synergy we will need. That is what we are looking at. But aside from that, we are well positioned. For the offer that is about to open, we are already getting feelers that people are seeing the investments in Fidelity and what it has done over the years. That is why they are very eager to be part of what is happening in Fidelity.

What is the major drive for capital that you are looking to get from the market?

When you are in business, at every point in your business, you need to sit back and look at where you are going to. We have seen a lot of growth in Fidelity in the last three to five years, in almost all the indices. If you look at indices like gross earnings, we’ve seen growth from N206 billion in 2020 to N556 billion in 2023 on gross earnings. That is a cumulative average growth rate of about 39 per cent. Similarly, our Profit Before Tax (PBT) grew from N28 billion to N124 billion by the end of 2023. That is a cumulative growth rate of 64 per cent. Moreso, savings accounts and deposits have also grown, significantly.

So, almost all the performance Indices have been on trajectory of growth. Therefore, you appreciate the kind of businesses you are seeing on the horizon at this moment. In this regard, what we have done, essentially, is to look at the Capital Needs Assessment, because we are getting more businesses, which is why we need to increase our capital, to be able to take on more businesses so that we do not get businesses we cannot handle. And like I said, capital in business is like what oxygen is to human beings.

Small business owners do say that commercial banks are not their friend at all. Do you think this new capital will get to small businesses?

Fidelity Bank has always been known for supporting small and medium enterprises (SMEs). Our bank has won several awards for SMEs support and there are probably only a few banks, if any, that have supported SMEs the way Fidelity has done. Our bank is more like an SMEs’ bank. We’ve grown new champions in the market and that is what we are known for. I can assure you that we will continue to do that, even better in the years ahead.

Recently, the Independent Project Monitoring Company recognised Fidelity Bank. What is the bank doing diffetently in Environmental, Social and Governance to warrant such recognition?

We are doing a lot. Today, we are one of the banks in Nigeria that have taken ESG to a greater level. We are doing a lot on the environment, staff (socials), and corporate governance. Therefore, if you talk about governance board, of course, ours is recognized as one of the strongest boards in the banking industry in Nigeria. We have people from different facets of the economy: oil and gas, investment banking and others. It goes to show that the quality of the board and its discussions are very strong. Then talk about the environment; we are doing paperless office, green financing and all. These are the things they have seen and that is why they recognised us.

Continue Reading

Business

Guaranty Trust HoldCo Proposes N500bn Share Offering

Published

on

By

Guaranty Trust HoldCo Proposes N500bn Share Offering

Guaranty Trust HoldCo Proposes N500bn Share Offering

Guaranty Trust Holding Company (GTCO) Plc, said it has filed a preliminary ‘red herring’ prospectus with the Securities and Exchange Commission (SEC) to raise N500 billion.

The Company in a notice said the number of ordinary shares to be offered and the price range for the proposed offering have not yet been determined.
The notice said “this is issued in reliance on Rule 283 of the Rules & Regulations of SEC, Nigeria. The notice read in part, this does not constitute an offer to sell or the solicitation of an offer to buy any securities.

“Any offer, solicitation or offer to buy, or any sale of securities will be made only by a prospectus duly registered by the Securities and Exchange Commission, Nigeria (SEC) in accordance with the provisions of the Investments and Securities Act, No. 29, 2007 (the Act) and the rules and regulations of the SEC made pursuant to the Act (the SEC Rules).”

Stating the purpose of the proposed offering, the notice further said that, “the net proceeds of the proposed offering will be used for the growth and expansion of the GTCO Group’s businesses. Such planned growth and expansion will be effected through investments in technology infrastructure to fortify existing operations, the establishment of new subsidiaries and selective acquisitions of non-banking businesses; and the recapitalisation of Guaranty Trust Bank Limited.”

It added that “the proposed offering is structured as an institutional offering targeted at eligible investors and a retail offering within Nigeria and a private placing to persons reasonably believed to be qualified institutional buyers outside Nigeria (the international tranche).”

It noted that the proposed offering is anticipated to open by July, 2024, adding that the filing of the red herring prospectus was undertaken with a concurrent filing of a preliminary universal shelf registration statement.

“The universal shelf registration will permit GTCO to establish a multi-currency securities issuance programme (the Programme) to issue various types of securities, or any combination of such securities, in one or more offerings, from time to time, to raise proceeds in an aggregate amount of up to $750 million or equivalent amount in Nigerian naira) in the Nigerian/international capital markets during the validity period of the Programme.”

Continue Reading

Trending