Access Bank is contemplating the issuance of dollar-denominated securities to enhance its capital base and support its expansion efforts. During a recent media briefing in Lagos, Managing Director Roosevelt Ogbonna shared details about this strategy, highlighting that the bank plans to issue these securities in two distinct tranches. While the exact amount the bank hopes to raise was not disclosed, Ogbonna indicated that Access Bank would look to the recent successful issuance of the Federal Government’s FX bond—as part of which Nigeria raised over $900 million from its inaugural Domestic FGN US Dollar Bond—as a benchmark for its own securities offering.
Ogbonna outlined that one tranche of the securities will be directed at Development Financial Institutions, while the second tranche will be accessible on the open market. This strategic move comes at a time when several international banks are pulling back from operating in Africa, presenting an opportunity for local banks like Access Bank to step in and capitalize on emerging market dynamics. Ogbonna emphasized that this local presence is crucial for leveraging opportunities tied to African free trade and strengthening the bank’s competitive edge in diverse markets.
In terms of expansion, Ogbonna affirmed Access Bank’s objective to extend its footprint into the United States by the first quarter of 2026, marking a significant milestone in its international strategy. Currently, the bank operates in established international markets, including London and Paris, and is set to open an office in Hong Kong on October 30. This move underscores Access Bank’s commitment to becoming a player in the global arena, enabling it to engage effectively with various counterparties worldwide.
The bank’s strategic approach is underscored by its desire to be more than just a pan-African entity; Ogbonna articulated the importance of having a meaningful impact in regional markets. He explained that Access Bank aims to emerge as a key bank in each of the 19 African markets it is targeting by 2027, with aspirations to be ranked among the top three banks in eight of those countries. Furthermore, the goal is to secure a position within the top ten and top five banks in 15 and 11 of those markets, respectively. This ambitious blueprint reflects Access Bank’s focus on local competition and its commitment to achieving dominance in key regional markets.
As Access Bank embarks on its expansion journey, Ogbonna stressed the significance of choosing markets thoughtfully. He asserted that the management is inclined towards investing in regions that exhibit a robust rule of law and a commitment to respecting contracts. This targeted investment philosophy is indicative of Access Bank’s strategy to cultivate sustainable growth while mitigating risks associated with operating in less stable environments.
Overall, the steps undertaken by Access Bank—ranging from the upcoming issuance of dollar-denominated securities to planned strategic expansion into the U.S. market—exemplify its proactive vision to bolster its capital base and establish itself as a dominant player in the financial landscape across emerging markets. Ogbonna’s insights reflect an understanding of the shifting dynamics within the banking sector, as well as the institution’s readiness to embrace opportunities that arise from the retreat of some international banks from the African continent.
