Access Bank Plc has announced that it has successful issued additional $500 million tier-1 Eurobond. This comes less than two weeks after the bank issued a $500 million Eurobond.
The commercial bank with presence in 11 African countries, Europe, Middle East and Asia, announced the fresh capital raising in a statement that was signed by its Company Secretary, Sunday Ekwochi.
It explained that the offering achieved a pricing of 9.125 per cent yield and coupon and was oversubscribed by two times it order book which peaked at over $1 billion.
According to the bank, the additional tier 1 Eurobond which was issued under its medium term note programme was a, “Basel III compliant perpetual non-call 5.25-year subordinated Note to be listed on the London Stock Exchange.”
It added: “The Eurobond may be called anytime from October 7, 2026, subject to conditions including the Central Bank of Nigeria’s approval.”
Commenting on the transaction, the Group Managing Director of the bank, Dr. Herbert Wigwe stated: “At Access Bank, we remain fully committed to the execution of our vision to become the ‘World’s Most Respected African Bank.”
According to Wigwe, the success of the transaction, which he said was the first in the Nigerian banking industry and the first of its kind in Africa outside of South Africa, would significantly enhance the bank’s tier 1 and total capital ratios ahead of Basel III implementation in Nigeria.
Additionally, the bank boss said the fresh capital would provide room for significant growth through ongoing execution of the bank’s strategic objectives.
“In particular, it follows our recently announced Group reorganisation which is aimed at capturing the strategic opportunities in payments, agency banking, and insurance across the continent which we expect will further enhance the growth profile and diversification of our business.
“Our growth and diversification strategy is also underlined by the recent expansion of our regional footprint where we continue to monitor opportunities. “This additional tier 1 Eurobond issuance, following our recently concluded $500 million Senior Unsecured Eurobond, underscores the formidable confidence of a diversified range of global and local investors in the bank’s strategy”.
Citigroup, JP Morgan, Mashreqbank and Renaissance Capital acted as Joint Bookrunners on the transaction; and Chapel Hill Denham and Coronation Merchant Bank acted as Financial Advisers and Joint Bookrunners.
Wigwe had said across Africa, there are opportunities for the bank to expand to high-potential markets, leveraging the benefits of the African Continental Free Trade Area agreement (AfCFTA. He had said AfCFTA, among other benefits, would expand intra-Africa trade and provide real opportunities for Africa.
