Access Bank Plc has notified its stakeholders of the plan to issue a 5-year fixed rate unsecured green bond. The latest announcement followed the one made in January 18,2019 when it notified the Nigerian Stock Exchange(NSE) that the Securities and Exchange Commission (SEC) had approved the book build in respect of its green bond with climate credentials being issued by the bank.
According to the statement by the bank signed by Sunday Ekwochi, company secretary, the N15 billion bond will be its first ever Climate Bond Standard Certified Corporate Green Bond issued in Africa. The issue has been awarded a B2 rating by Moody’s, and was verified by PwC UK as well as was certified by the Climate Bond Initiative as having met the Climate Bond Standards.
The bond has a tenor of 2019 to 2024, with a coupon ban of 14.90 percent to 15.10 percent per annum; the commencement of the book build was Thursday February 21, 2019 while the conclusion of the book build will be February 28, 2019 by 5 pm. Other important dates include Thursday, February 28, 2019 which is the day for the distribution of allocation letters while funding commitment will be on Friday , March 1, 2019.
“With our pace-setting experience in the mainstreaming of sustainability in our business operations, we are confident that this issue will further help in supporting environmentally friendly investors to meet their investment objectives whilst simultaneously supporting the bank’s customers towards realising growth opportunities in the fast-developing low carbon economy”, Herbert Wigwe, Access Bank’s group managing director, said.
It should be recalled that Access Bank in June 2018 launched the Nigerian Green Bond Market Development Programme in partnership with FMDQ OTC Securities Exchange and the Securities Exchange Commission.
The proceeds from the green bond issue will be used to finance eligible green projects that meet Climate Board Initiative (CBI) Standards. The issue will serve as a turning point for Nigeria, attracting both domestic and international investors and will set the pace for other Nigerian corporate to raise green capital.
“Green Bonds are any type of bond instrument where the proceeds are exclusively applied to finance or re-finance, in part or in full, new and/or existing eligible green projects that align with the four core components of the Green Bond Principles (GBP)”, the NSE said on its official website
Types include standard green “use of proceeds” bonds, green revenue bond, green project bond and green securitised bond.