Access Bank successfully prices landmark $500m additional Tier 1 Eurobond
Access Bank Plc has announced the successful pricing of its $500 million 144A/Reg S Additional Tier 1 Eurobond. The offering achieved a pricing of 9.125% yield and coupon recording over 200% over-subscribed order-book which peaked at over $1 billion.
The Additional Tier 1 Eurobond which is issued under the Bank’s Medium Term Note Programme, is a Basel III compliant Perpetual Non-Call 5.25-year Subordinated Note, scheduled to be listed on the London Stock Exchange. It is pertinent to note that the Eurobond may be called anytime from 7th of October, 2021, subject to pre-requisite conditions among which is the Central Bank of Nigeria’s approval.
This information was disclosed by the lender in a statement signed by its secretary, Sunday Ekwochi, and made available on the website of the Nigerian Exchange Limited (NGX).
Commenting on the transaction, the Group Managing Director of the Bank, Dr Herbert Wigwe, said that: “At Access Bank, we remain fully committed to the execution of our vision to become the World’s Most Respected African Bank. This remarkable transaction, which is a first in the Nigerian banking industry, significantly enhances our Tier-1 and Total Capital Ratios, providing significant room for growth and on-going execution of our strategic objectives. It showcases the Bank’s leadership in its marketplace. This issuance on the back of our recently concluded $500 million Senior Eurobond underscores the formidable confidence of a diversified range of global and local investors in the Access Bank strategy.’’
Access Bank had issue additional 5 Year Tier 1 Eurobond, sequel to the successful issuance of a $500m unsecured Eurobond. These issuances are part of the lender’s Global Medium-Term Note Issuance Programme.
The financial giant also revealed that Citibank, JP Morgan, Mashreqbank and Renaissance Capital will act as Joint Bookrunners of the transaction, while Chapel Hill Denham and Coronation Merchant Bank will act as Financial Advisers and Joint Bookrunners) of the deal.
