Access Bank Plc set to issue additional 5-Year Tier 1 Eurobond.

Access Bank Plc, a leading full service Nigerian commercial bank with presence in 11 African countries, has announced plans to issue additional 5-Year USD denominated Tier 1 Eurobond, in furtherance of its Global Medium-Term Note Issuance Programme.

To facilitate this, the tier-1 bank announced that it will be organizing a global investor call and series of fixed income investor calls. The global investor call slated for 27th of September 2021, will be hosted by Citi, J.P. Morgan, Renaissance Capital and Mashreqbank (Joint Bookrunners of the deal) in collaboration with Chapel Hill Denham and Coronation Merchant Bank (Financial Advisers of the deal).

Recall that Access Bank had earlier issued a $500 million unsecured Eurobond, part of its Global Medium-Term Note Issuance Programme. The deal drew huge interest from top-grade investors globally and was oversubscribed 3X, making it the highest orderbook for a Nigerian bank Eurobond transaction.

Buoyed by this success, the top lender in a notice made available on the website of the Nigerian Exchange Limited (NGX) today, revealed that it will further consolidate on its success by issuing a new 5-Year USD-denominated Regulation S/144A Tier 1 bond.

As at the period of reporting this, details about the size or amount of the bond and its coupon rate remains unknown. In light of this, further details about the Basel III-compliant bond will be subsequently communicated.

What they are saying:  Commenting on the recent development, a press statement issued by Access Bank and signed by its Secretary, Sunday Ekwochi, partly reads: ‘’Access Bank Plc (‘’Access Bank’’ or the ‘’Bank’’) announces today on the Nigerian Exchange Limited that it has mandated Citi, J.P. Morgan, Renaissance Capital and Mashreqbank as Joint Bookrunners and Chapel Hill Denham and Coronation Merchant Bank as Financial Advisers and Joint Bookrunners to arrange a global investor call on 27 September 2021 at 2PM UKT/9 AM NYT in addition to a series of fixed income investor calls. The issuance of an inaugural Basel III-based perpetual Non-Call 5.25-year benchmark USD-denominated Regulation S/144A Additional Tier 1 bond offering under the Bank’s Global Medium-Term Note Programme may follow, subject to market conditions.’’

Why it matters: Apart from helping the tier-1 bank to refinance its debt, the successful issuance of this bond is capable of acting as a great support and helping the CBN to manage its FX crisis, all of which will help to strengthen the exchange rate.




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