Amid massive global interest, Access Bank successfully launches $500m Senior Unsecured Eurobond.

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 holds HY 2021 Investors Presentation.

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 announces 5-Year Senior Unsecured Note Issuance.

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.

2021 Half Year: Access Bank to pay N10.7 billion interim dividend to shareholders.

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.

 

Access Bank grows half year profit by 42% to N86.94 billion in HY 2021.

Access Bank Plc released its interim financial statements for the period ended 30th of June, 2021.

  • Net interest income after impairment charges was N171.4 billion. (+56.2% YoY)
  • Net fee and commission income of N58.73 billion. (+44.7% YoY)
  • Personnel expenses totalled N43.6 billion. (+20.3% YoY)
  • Deposits from customers grew to N5.97 trillion.
  • Profit for the period was N86.94 billion. (+42.4% YoY)
  • Earnings per share of N2.48 Vs N1.73 YoY.
  • A dividend of 30 kobo per share was proposed by the board.

See link to results.

Access Bank Delays Publication of Audited Half Year Results

The Management of Access Bank Plc has notified stakeholders of its inability to meet up with the regulatory time frame earmarked for the publication of its Audited Financial Statements for the half year period ended 30th of June, 2021.

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

According to the disclosure, due to ongoing strategic business combinations across jurisdictions and the need to obtain regulatory approval, the release of the Group’s 2021 Audited Interim Financial Statements could be delayed beyond the regulatory due date of 29th of August, 2021.

Consequently, the banking giants expressed optimism that it would publish the results within the extended timeframe. It emphatically stated that it expects to publish the results on or before September 10, 2021.

In addition, the bank reminded insiders that the earlier declared closed period in respect of transaction in the Bank’s securities remains in place until 24 hours after the release of the Results.

Access Bank profit grows by 28% to N52.5 billion in Q1 2021.

Access Bank Plc released its unaudited results for the first quarter of the year (Q1, 2021).

  • Net interest income after impairment charges was N81.4 billion. (+28% YoY)
  • Net fee and commission income of N30.73 billion. (+33.6% YoY)
  • Personnel expenses of N20.06 billion. (+2.2% YoY)
  • Profit for the period was N52.55 billion. (+28.4% YoY)
  • Earnings per share of N1.49 Vs N1.21 YoY.

See link to results.

Access Bank Plc holds FY 2020 investors presentation.

Access Bank Nigeria Plc held its FY 2020 results presentation to investors and analysts. Below are the facts to the figures;

  • The bank recorded a surge in its customers’ base, surpassing over 40 million customers in 2020- a number that puts the bank above 47 African countries (82%) in terms of population.
  • The Bank’s Return on Equity (ROE), CAR and Tier 1 ratios stood at 15.6%, 20.6% and 15.46% respectively.
  • Of its global 6,897 professional staff in 2020, 53% are male while 47% are female.
  • It raised a total of N15 billion in green finance sequel to its launch of the first Green bond in SSA. It also spent a total of N10.25 billion in community initiatives.
  • Cost to Income ratio declined to 63.4% in FY 2020 (-2.7% YoY)
  • The Bank explained that its strong and diversified revenue growth in 2020 has been driven by expansive retail banking growth, optimizing value chain for wholesale banking customers and well-executed trading strategy among others.

For more information about the investors’ presentation, click HERE.

Access Bank Plc announces Annual General Meeting.

Access Bank Plc has announced that it will be hosting its 32nd Annual General Meeting on the 30th of April, 2021.

According to a notice signed by the Company’s secretary, Sunday Ekwochi, the meeting will hold at the Bank’s Head Office at Oniru Estate, Victoria Island, Lagos by 10:00 am. The following will be discussed;

  • The audited financial statements of the Bank for the year ended 31st December 2020.
  • The proposed final dividend for the aforementioned period will be formally declared and subsequently paid.
  • Appointment into the Bank’s Board will be duly scrutinized and ratified.
  • Directors’ fees for FY 2021 amounting to N58.13 million will be discussed and ratified.
  • The remuneration of bank managers and auditors will also be considered and discussed.

What you should know:

  • Access Bank Plc had earlier reported a Profit after tax of N106.01 billion in FY 2020. Sequel to this, the bank proposed a final dividend of 55 kobo.
  • In line with CAC guidelines, attendance of the AGM will be by proxy only

For more information about the notice, click HERE.

Access Bank Plc posts N106.01 billion profit in FY 2020.

Access Bank Plc released its full-year results for the year ended 31st December 2020.

  • Net interest income after adjusting for impairment charges was N200.06 billion. (-22.2% YoY)
  • Net fee and commission income of N93.6 billion. (+26.4% YoY)
  • Personnel expenses totaled N73.17 billion. (-4.93% YoY)
  • Profit for the year was N106.01 billion. (+12.7% YoY)
  • Earnings per share of N3.01 Vs N2.79 YoY.
  • Customers’ deposits totaled N5.6 trillion. (+31.3% YoY)
  • A final dividend of 55 kobo was proposed.

See link to results.