Access Bank extends Operation to 4 African Countries
Following the takeover of Transnational Bank Limited of Kenya, Access Bank Plc has revealed that it will open operations in four additional African countries in the next year.
“By this time next year we would probably have added about four more subsidiaries, most of them greenfield,” Bloomberg quoted the bank’s Chief Executive Officer, Herbert Wigwe, to have said.
South Africa, Angola, Mozambique, Senegal, Liberia and Ivory Coast are among countries being considered for the setting up of subsidiaries, representative offices or partnerships, he said. According to a presentation on its website, the institution plans to be present in 22 African countries. It currently operates in Sierra Leone, Gambia, Congo, Ghana, Nigeria, Rwanda and Congo.
Access Bank acquired rival Diamond Bank early this year as it sought to expand retail penetration in its home market. The lender is acquiring 97 per cent of Transnational Bank and said it will inject more equity into the institution to meet the needs of its clients in the east African hub.
“By the end of the second year we will start to see a return on equity that is close to 20%,” Wigwe said of Transnational Bank.
The Lagos-based lender will decide whether to issue a fresh Eurobond before its $300 million debt matures in 2021, Wigwe said.
“We are careful as to what going to the market means in terms of cost,” he said.
“We will approach the market at the appropriate time.”