KEY POINTS
- Access Bank will issue dollar-denominated securities in two tranches targeting DFIs and the open market.
- Bank plans to enter the U.S. market by Q1 2026, expanding its global presence.
- Access bank aims to be a top 3 bank in 8 of its 19 African markets by 2027.
Access Bank Plc, a leading financial services group, is exploring the sale of dollar-denominated securities in a strategic move to boost its capital base and fund its expansion across key international markets.
The development was disclosed by the Bank’s Managing Director/Chief Executive Officer, Roosevelt Ogbonna during a media briefing held in Lagos on Monday.
Ogbonna revealed that the securities issuance would be carried out in two tranches, with one targeting Development Financial Institutions (DFIs) and the other available on the open market.
Strategy Inspired by Nigeria’s Dollar Bond Success
While the MD did not specify the amount the lender intends to raise, he highlighted that the recent success of Nigeria’s oversubscribed Federal Government FX bond would serve as a guideline for their plans.
The Nigerian government raised over $900 million in its first-ever Domestic FGN US Dollar Bond offering in August 2024. The success of this initiative is seen as a benchmark for Access Bank’s upcoming securities sale.
Ogbonna emphasized the bank’s intention to tap into similar investor sentiment and capitalize on growing market confidence in dollar-denominated assets. “The successful issuance of the Federal Government’s US dollar bond demonstrates the strong demand for such securities, and we believe there is significant potential for Access Bank to follow suit,” Ogbonna remarked.
Seizing Market Opportunities Amid International Bank Exits
Addressing the broader African market landscape, Ogbonna noted the strategic importance of a local bank stepping up as international banks withdraw from the continent. He highlighted the bank’s commitment to positioning itself as a dominant player in regional markets. “With international banks pulling out, there has to be a local African bank capable of leveraging the opportunities presented by the African free trade area. Access Bank is prepared to step into this role,” Ogbonna stated.
Ambitious Expansion Plans into the U.S. Market
In line with its vision of becoming a global financial institution, Access Bank has outlined plans to expand into the United States market by the first quarter of 2026. The bank already has a strong presence in London and Paris and plans to open a new office in Hong Kong by October 30, 2024.
The move will mark a significant milestone as the bank aims to broaden its international reach and engage with global counterparties. “By the first quarter of 2026, we will have Access Bank USA. We are going to be in the global market, holding conversations with different counterparties operating across the world,” Ogbonna added.
Aiming for Dominance in African Markets
Ogbonna also emphasized Access Bank’s goal of achieving a leading position in its African markets. The bank plans to be among the top three banks in eight of the 19 countries it operates in by 2027 and within the top 10 in 15 countries. “There’s no point in being a pan-African bank without having a meaningful impact,” he stressed. “We aim to dominate each market we enter and contribute significantly to local economies.”
Deliberate Market Selection
Ogbonna highlighted that Access Bank’s expansion strategy is guided by a commitment to markets with clear rule of law and respect for contracts. The bank aims to invest in jurisdictions that provide a conducive environment for sustainable growth and operations.
As Access Bank continues to chart its path towards becoming a major global player, its strategic focus on dollar-denominated securities and expansion into new markets underscores its ambition to consolidate its position as a dominant force in the African banking landscape.
