Tag: Access Bank Plc

Access Bank Plc has notified its shareholders, the investing public and other relevant stakeholders of the postponement of the Board of Directors Meeting and extension of non-dealing period.

This is according to a notice signed by the company’s secretary, Sunday Ekwochi, and filed with the Nigerian Exchange Limited (NGX).

According to the notice, the board meeting which was earlier announced to be held on Wednesday, October 27, 2021, has now been rescheduled to hold on Friday, October 29, 2021. The meeting was set up to enable the Directors approve the group’s unaudited financial accounts for the third quarter of the year (Q3, 2021) ended 30th of September, 2021.

In addition, the company disclosed that the earlier announced Non-Dealing period in respect of the company’s securities will continue until 24 hours after the release of the company’s results n line with the post-listing requirements of the NGX.

During the closed period, all insiders and their connected persons are prohibited from directly or indirectly trading (i.e buying, selling, transferring or otherwise dealing) in the company’s securities in any manner.

See full disclosure here.

Access Bank Plc has finally completed the acquisition of a majority stake of about 78.15% in African Banking Corporation of Botswana Limited (‘BancABC Botswana’).

The recent move which is in line with the Bank’s commitment of expanding its presence in the African continent was announced through a notice signed by its Secretary, Sunday Ekwochi, and filed with the Nigerian Exchange Limited (NGX).

Recall that Access Bank had reached an agreement to acquire a majority stake in BancABC earlier in April this year. According to the reports, the deal would see Access Bank acquire the latter for an undisclosed cash amount of about 1.13 times the book value plus a two-year deferred payment. With the conclusion of the deal, Access Bank now has a presence in ten African countries, after similar acquisitions in financial institutions domiciled in Zambia, South Africa, Mozambique, among others.

According to the statement issued by the financial giant, BancABC Botswana is the fifth largest bank in Botswana and is a well-capitalised franchise poised for growth in its local market. The new acquisition will form part of the Bank’s nexus for trade and payments in Southern Africa and the broader COMESA trade region. The deal will also afford Access Bank the opportunity to leverage on BancABC strong retail banking space to provide products that would benefit its local markers and enable it compete strongly across core business segments.

Commenting on the transaction, the GMD/CEO of Access Bank Plc, Dr Herbert Wigwe said: ‘’We are pleased with the successful conclusion of this transaction which will provide significant synergies by combining BancABC Botswana’s strong retail banking operation with Access Bank’s wholesale banking capabilities. It will also strengthen the quality of earnings through revenue diversification and growth in the corporate and SME banking segments for BancABC Botswana. The combination is another step towards our broader vision of becoming the World’s most respected African bank.’’

What you should know:

• In line with its mission of expanding its reach within the African space, Access Bank in recent times had made significant entry into key markets in South Africa, Zambia, Mozambique, among others. The bank had announced the acquisition of substantial shareholdings in Grobank, Cavmont Bank, etc.
• Access Bank closed trading on 11th of October, 2021 with a share price of N9.45

Access Bank Plc has announced the successful pricing of its $500 million 144A/Reg S Additional Tier 1 Eurobond. The offering achieved a pricing of 9.125% yield and coupon recording over 200% over-subscribed order-book which peaked at over $1 billion.

The Additional Tier 1 Eurobond which is issued under the Bank’s Medium Term Note Programme, is a Basel III compliant Perpetual Non-Call 5.25-year Subordinated Note, scheduled to be listed on the London Stock Exchange. It is pertinent to note that the Eurobond may be called anytime from 7th of October, 2021, subject to pre-requisite conditions among which is the Central Bank of Nigeria’s approval.

This information was disclosed by the lender in a statement signed by its secretary, Sunday Ekwochi, and made available on the website of the Nigerian Exchange Limited (NGX).
Commenting on the transaction, the Group Managing Director of the Bank, Dr Herbert Wigwe, said that: ‘’At Access Bank, we remain fully committed to the execution of our vision to become the World’s Most Respected African Bank. This remarkable transaction, which is a first in the Nigerian banking industry, significantly enhances our Tier-1 and Total Capital Ratios, providing significant room for growth and on-going execution of our strategic objectives. It showcases the Bank’s leadership in its marketplace. This issuance on the back of our recently concluded $500 million Senior Eurobond underscores the formidable confidence of a diversified range of global and local investors in the Access Bank strategy.’’

What you should know:
• Nairametrics had earlier reported plans by Access Bank to issue Additional 5 Year Tier 1 Eurobond, sequel to the successful issuance of a $500m unsecured Eurobond. These issuances are part of the lender’s Global Medium-Term Note Issuance Programme.

• The financial giant also revealed that Citibank, JP Morgan, Mashreqbank and Renaissance Capital will act as Joint Bookrunners of the transaction, while Chapel Hill Denham and Coronation Merchant Bank will act as Financial Advisers and Joint Bookrunners) of the deal.

• Access Bank closed trading on September 30, 2021 with a share price of N9.15.

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.

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.’’

What you should know:

• 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:  Nairametrics had earlier reported 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.

Access Bank Plc held its Half Year (HY) 2021 results presentation to investors and analysts. Below are the facts to the figures;

• Gross revenue grew by 14% YoY to N450.6bn, comprising of 71% in interest income and 29% in non-interest income. The Group explained that the strong and diversified revenue growth were driven by expansive retail banking growth as evident by the increased velocity of transactions, well executed trading strategy, optimizing value chain of wholesale banking customers, prioritizing margin growth through efficiencies, and delighting the customer at every touchpoint.

• Interest income grew by 30% YoY, due to the improved yield environment and a growth in interest on loans and advances to customers, which partly cancelled out the decline in cash and cash equivalents.
• In its retail banking division, the bank recorded over 42million customers, opened 1.3 million accounts under its agency banking initiative, recorded 75, 231 registered agents nationwide and attracted about N1.37 trillion in savings account deposits during the period under review.
• The bank also showed resilience during the period as its assets yields increased by 80bps YoY to 10.3%. Net interest margin increased by 157bps YoY to 6.4%, while Cost of Funds (CoF) decreased by 80bps YoY to 2.9%.
• Operating expense grew by 9% YoY to N189.8bn due to enlarged franchise following the acquisitions in Kenya, Mozambique, South Africa and Zambia.
• The group maintained strong asset quality relative to peers with NPL ratio stable at 4.3% in June 2021. (December 2020: 4.3%)
• Digital loans worth N68bn were disbursed during the period.

For more information about the Investors presentation, click HERE.

Access Bank Plc has announced plans to issue a 5-Year fixed rate Senior Unsecured Note, as part of its Global Medium Term Note Programme.

To facilitate this, the bank announced that it will be hosting a series of global investor and fixed income investor calls, from September 11, 2021.  The calls will be co-anchored by a series of leading financial institutions such as; Absa, Barclays, J.P. Morgan and Standard Chartered Bank (Joint Bookrunners) and Chapel Hill Denham, Rand Merchant Bank (Financial Advisers).

Confirming this development, the bank in a statement signed by its secretary, Sunday Ekwochi said: ‘’Access Bank Plc (‘’Access Bank’’ or ‘’the Bank’’) announces today on the Nigerian Exchange Limited that it has mandated Absa, Barclays, J.P. Morgan and Standard Chartered Bank as Joint Bookrunners and Chapel Hill Denham and Rand Merchant Bank as Financial Advisers and Joint Bookrunners to arrange a global investor call in addition to a series of fixed income investor calls commencing on September 11, 2021. The issuance of a 5-Year fixed rare USD-denominated Regulation S/144A Senior Unsecured Note under the Bank’s Global Medium Term Note Programme may follow subject to market conditions.

The bank further added that: ‘’Kindly note that this announcement is not being made in, and copies of it may not be distributed or sent into, the United States (except that it may be sent in the United States directly to qualified institutional buyers, as defined in rule 144a under the U.S. Securities Act of 1993, as amended (the ‘’Securities Act’’), Canada, Australia, Japan, Nigeria or any other jurisdiction where to do so would be unlawful. These materials do not constitute or form a part of any offer or solicitation to purchase or subscribe for securities in the United States. The securities referred to herein have not been and will not be registered under the Securities Act, and may not be offered or sold in the United States or to U.S persons unless such securities are registered under the Securities Act or pursuant to an exemption from the registration requirements of the Securities Act. Recipients of this announcement may not forward this to any other person resident in Nigeria. Access Bank will not be liable for violation of Nigeria’s securities laws where a recipient forwards this announcement to other persons resident in Nigeria’’

Back story: Recall that Access Bank’s $300 million senior bond issued in 2016 is due for repayment in October this year. Based on the current FX policy restrictions by the CBN, the lender through the proposed issuance is trying to refinance its debt by exploring other sources of funding.

The Board of Directors of Access Bank Plc has earmarked a total sum of N10.7 billion as dividends to shareholders for the period ended 30th of June, 2021.

This is according to a disclosure signed by the company’s secretary, Sunday Ekwochi, and sent to the Nigerian Exchange Limited (NGX).

According to the notice, the banking giant proposed to pay out a dividend of 3 kobo for each of the outstanding 35,545,225,622 ordinary shares of the company, held by its shareholders, amounting to N10,663,567,686.6

It is also pertinent to note that the proposed  interim dividend of 30 kobo per share is about 20% higher than the amount proposed in the corresponding period of last year (HY 2020: 25 kobo). This increase might be attributed to a much improved financial performance reported by the bank during the just concluded half year period.

Recall that the bank recently released its 2021 half year results, where it posted a 42.4% increase in its Profit After Tax (PAT) figures.  Net interest income after impairment also surged by 56% to N171.4 billion, customers deposit grew to N5.97 trillion within the period, while its earnings per share (EPS) grew to N2.48 from N1.73 recorded in corresponding period of last year.

What you should know:

• The first-tier bank revealed that the interim dividends will be paid electronically on the 29th of September, 2021 to qualified shareholders, whose names appear on the Register of Members as at Thursday, 16th of September, 2021. To qualify, shareholders must have completed the e-dividend registration and mandated the Registrar (United Securities Limited) to pay the Registrar to pay their dividends directly into their Bank accounts.
• To facilitate the disbursement of the dividends, the bank announced that the Register of its Shareholders will be closed on Friday, 17th of September, 2021.
• Meanwhile, Access Bank Plc closed trading yesterday 1st of September,  2021 with a share price of N9 per share.