Access Bank Plc has announced the successful launching of a $500 million 144A/RegS Senior Unsecured Eurobond, as part of its Global Medium-Term Note Programme.
According to a notice signed by the company’s secretary, Sunday Ekwochi, and made available on the website of the Nigerian Exchange Limited (NGX), the transaction recorded a massive interest from top quality investors globally, including the United States, Europe, Middle East, Asia and Africa, anchored by a number of large tickets.
The offering achieved the lowest (outstanding) Nigerian bank Eurobond coupon, supported by an over 3x oversubscribed orderbook of over $1.6 billion, which represents the largest orderbook ever for a Nigerian bank Eurobond transaction. The bond which will mature on the 21st of September, 2026, was issued with a yield and coupon of 6.125%, with interest payable semi-annually in arrears. The coupon of 6.125% is another first in the corporate Eurobond issuance space.
Interestingly, the bond is already trading at a premium from issue levels with bids around 5.89% levels whilst offers are around 5.78% as the unmet demand from the auction filtered into the secondary market. (101/101.50 indicative price)
On what it intends to use the proceeds for, the lender revealed that the net proceeds of the Eurobond will be used to provide medium term funding in a bid to enhance its capacity and support its general banking purposes.
Commenting on the Eurobond Issuance, the Group Managing Director of Access Bank, Dr Herbert Wigwe 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 US$500 million 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.’’
The Senior Eurobond is a 5-year unsecured note under the Bank’s $1.5billion Global Note programme
Absa, Barclays Bank, JP Morgan and Standard Chartered acted as Joint Bookrunners on the transaction, and Chapel Hill Denham and Rand Merchant Bank acted as Financial Advisors and Joint Bookrunners.
In case you missed it: it was earlier reported that plans by the financial giant to launch the 5-Year Senior Unsecured Eurobond. The recent development is following an imminent retirement of the Bank’s $300 million senior bond issued in 2016 and due for repayment in October, 2021. With the restrictive FX policy stance of the CBN, the lender hopes to optimize this offering to refinance its debt.