Access Bank to improve funding with oversubscribed $500m Eurobond
Ability of Access Bank Plc to fund medium term projects and other big ticket transactions to grow the Nigerian economy and that of the African continent is now enhanced with the over-subscription of its $500 million Senior Unsecured Eurobond issued last week under its $1.5 billion Global Medium-Term Note Programme.
The bank’s offering achieved three times oversubscribed orderbook of over $1.6 billion, representing the largest orderbook ever for a Nigerian bank Eurobond transaction.
The offer described as outstanding Nigerian bank Eurobond coupon will greatly improve the bank’s efforts to do more than banking.
Funding big ticket transaction or projects in a medium and long term arrangement has been a challenge in the Nigerian market and the proceeds expected from the Eurobond offer will deepen the capacity of the Tier-1 lender.
Access Bank with presence in 14 African Countries last week announced that it was set to issue a 5-Year fixed rate Senior Unsecured Note in its Global Medium Term Programme.
The bank’ Company Secretary, Sunday Ekwochi announced the successful pricing of the $500 million 144A/ Reg Senior Unsecured Eurobond, stating that the proceeds of the offer which achieved the lowest (outstanding) Nigerian bank Eurobond coupon would be used to provide medium term funding and boost the capacity of the tier -1 financial institution.
The Senior Eurobond is a 5-year unsecured note (144A/Regs) under the Bank’s $1. 5 billion Global Medium-Term Note Programme, and is listed on the main market of the London Stock Exchange. The bond matures in September 2026 and was issued with a yield and coupon of 6.125 percent with interest payable semi-annually in arrears.
The bank that is rated B’ stable outlook by Fitch and ‘B2’ negative outlook by Moody’s, said that the transaction saw a significant demand from top quality investors globally including United States, Europe and other continents.
“The net proceeds of the Eurobond will provide medium term funding and help to enhance the capacity of the Bank to support its general banking purposes.
“The transaction drew a significant demand from top quality investors globally including United States, Europe (incl. the UK), iddle East, Asia and Africa, anchored by a number of large tickets.”
Commenting on the Eurobond issuance, Herbert Wigwe, Group Managing Director, said, “At Access Bank we remain committed to our vision to become the World’s Most Respected African Bank and Africa’s Gateway to the World.
“The success of our S500 miillion Senior Unsecured Eurobond is yet another stride towards the realisation of that vision and underscores our investors confidence in the Access Bank story. We are pleased with the diversity of the order book and the success of this issuance further strengthens our resolve to deliver on our strategic objectives.”
The bank listed Absa, Barclays Bank, JP Morgan and Standard Chartered acted as Joint Bookrunners onthe transaction; and Chapel Hll Denham and Rand Merchant Bank acted as Financial Advisors and Joint Bookrunners.
The bank stated that it has mandated Absa, Barclays, J.P. Morgan and Standard Chartered Bank as Joint Book runners and Chapel Hill Denham and Rand Merchant Bank as Financial Advisers and Joint Bookrunners to arrange a global investor call in addition to a series of fixed income investor calls which commenced September 11, 2021.
