Access Bank Plc has sold another $500 million Eurobond to raise medium-term funding that will enhance its capacity and support general banking activities. The bank has also said that the Eurobond has been oversubscribed by more than 200 percent.
In a statement released to the Nigerian Exchange Limited and the investing public, the bank said the five-year unsecured note (144A/RegS) was oversubscribed by 200 percent at $1.6bn on its order book.
Sunday Ekwochi, the company’s secretary in a statement indicated that the 144A/RegS Additional Tier 1 Eurobond was priced at a 9.125 percent yield with the coupons peaking over $1bn.
Access bank stated that the Eurobond which was issued under the bank’s medium-term note programme is a Basel III compliant Perpetual Non-Call 5.25-year subscribed note to be listed on the London Stock Exchange.
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“The Eurobond may be called anytime from October 7, 2026, subject to conditions including the Central Bank of Nigeria’s approval,” the bank stated.
Herbert Wigwe, group managing director of the bank said that the transaction significantly enhanced Access Bank’s tier 1 and total capital ratios, and provided significant room for growth and execution of its strategic objectives.
He further stated that the CBN’s current monthly intervention in the foreign exchange market is likely below $1.8 billion, which is 1.7x lower than the average for Q1’20 (pre-pandemic level).
“This issuance on the back of our recently concluded $500m senior Eurobond, underscores the formidable confidence of a diversified range of global and local investors in the Access Bank strategy,” he said.
“The senior Eurobond which is listed on the London Stock Exchange 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 said.
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