By Kayode Tokede
Access bank plc has said it plans to list N15billion green bond on the Luxembourg Stock Exchange (LuxSE) and the Nigerian Stock Exchange (NSE).
If its application to the LuxSE is successful, it will be the first cross listing of a green bond born out of the partnership between NSE and LuxSE.
The financial institution said it would be listing N15 billion, 15.50% fixed rate, unsecured climate-credential green bond with a five-year maturity on the bourse.
Access Bank disclosed that it had applied for the admission of the N15 billion green bond, but won’t be traded on the LuxSE.
The bond is the first of its kind to be issued by an African corporate and represents a major milestone in the development of the local green finance market.
The N15 billion, 5-year Fixed Rate Senior Unsecured Green Bond is certified by the Climate Bond Initiative having met the Global Climate Bonds Standard. It was rated AA– by Agusto & Co, while the underlying framework was verified by PwC (UK).
The Group Managing Director/Chief Executive Officer, Access Bank Plc, Mr. Herbert Wigwe, in a statement said, “This listing will also support environmentally friendly investors to meet their investment objectives, while simultaneously supporting the bank’s customer towards realising growth opportunities in the fast-developing low carbon economy.”
At the time of signing, CEO, NSE, Mr. Oscar Onyema, expressed that the partnership would deliver increased visibility for issuers, as well as deepen the Nigerian capital market through the mobilisation of the foreign green capital needed to fund sustainable projects in Nigeria. The successful listing of Access Bank’s N15Bn Green Bond on the LuxSE will, therefore, be a strong signal for expansion in the capital market owing to the NSE-LuxSE partnership.
The Company Secretary, Access Bank, Mr. Sunday Ekwochi said, “Access Bank Plc wishes to notify the Nigerian Stock Exchange and the investing public that the bank has applied to the Luxembourg Stock Exchange for the admission of the above-mentioned instrument on the official list of LuxSE. Please note that the Bonds would not be traded on LuxSE.”
Access Bank listed its green bond on the FMDQ OTC Securities Exchange and the Nigerian Stock Exchange (NSE). This followed the formal approval of the bond by the Securities and Exchange Commission.
Speaking on the first listing last year, the Group Managing Director/CEO of the bank, Herbert Wigwe, said, “At Access Bank, we are a pioneer in both domestic and international capital markets, leading the way with our commitment to sustainable banking.
”We hope that this bond issuance inspires other African companies to support the long-term development of the green finance market whilst simultaneously realizing the growth potential of the fast-developing low carbon economy.”
During the annual meeting of the World Federation of Exchanges in Singapore in October 2019, NSE and LuxSE signed a Memorandum of Understanding (MoU) to promote the cross listing and trading of bonds. This collaboration is designed to improve the growth of sustainable finance in Nigeria, a journey which began with the launch of the first Sovereign Green Bond by NSE, in partnership with the Federal Ministry of Environment, Federal Ministry of Finance and the Debt Management Office.