Access Bank concludes plans to raise tier-2 capital of $250 million

Access Bank Plc has concluded plans to raise to raise additional capital of $250 million as it continues its merger deal with Diamond Bank Plc.

Herbert Wigwe confirmed this on Wednesday, December 19, 2018, during Access Bank World Press Conference at the bank's headquarters in Lagos.

“We have concluded plans with some partners to raise a tier-2 capital of $250 million,” he said without providing details.

The proposed fundraising, Financial Times, had earlier reported that it will help the tier-1 bank to keep its capital well above regulatory requirements.

Access Bank CEO, Herbert Wigwe, Diamond Bank CEO, Uzoma Dozie and other top management at a World Press Conference, December 19, 2018. Pulse Nigeria

Wigwe said Access Bank is capitalising on Diamond Bank's 17 million customers and digital capabilities to create the bank Africa's largest by customer base.

When the deal is completed in 2019, Access bank will become Nigeria's largest bank by asset displacing Zenith Bank Plc and Guaranty Trust Bank Plc.

On Monday, Nigeria's tier-1 bank, Access Bank Plc confirmed the takeover of Diamond Bank Plc in a merger deal in order to create Nigeria and Africa’s largest retail bank.

The deal, Access Bank, had said it will involve acquiring the entire issued share capital of Diamond Bank in exchange for a combination of cash and shares in Access Bank via a Scheme of Merger.