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Access Bank’s $500m senior unsecured Eurobond records oversubscription

Access Bank Plc has announced the over-subscription of its $500 million Senior Unsecured Eurobond issued last week under its $1.5 billion Global Medium-Term Note Programme.

In a notification at the Nigerian Exchange, the Nigeria’s leading bank said the offering achieved three times oversubscribed orderbook of over $1.6 billion, representing the largest orderbook ever for a Nigerian bank Eurobond transaction.

Access Bank with presence in 14 African Countries said the offer, an outstanding  Nigerian bank Eurobond coupon will greatly improve its efforts to do more than banking.

The bank said with  the successful pricing of the US$500 million 144A/ Reg Senior Unsecured Eurobond, 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 US$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 USS500 milion 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.” Absa, Barclays Bank, JP Morgan and Standard Chartered acted as Joint Bookrunners on the transaction; and Chapel Hll Denham and Rand Merchant Bank acted as Financial Advisors and Joint Bookrunners.

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