Access Bank PLC $500 million Senior Unsecured Eurobond launched

Access Bank PLC US$500 million Senior Unsecured Eurobond launched with record oversubscription bodes well for South African DMTN program

Leading full service pan-African commercial bank Access Bank PLC is pleased to announce the successful pricing of a US$500 million 144A/ Reg S Senior Unsecured Eurobond. The offering achieved the lowest (outstanding) Nigerian bank Eurobond coupon, supported by an over three times oversubscribed orderbook of over US$1.6 billion, which represents the largest orderbook ever for a Nigerian bank Eurobond transaction.

The Senior Eurobond is a five-year unsecured note under the Bank’s US$1.5 billion Global Medium-Term Note Programme and is listed on the main market of the London Stock Exchange. The bond matures in September 2026, and was issued with a yield and coupon of 6.125% with interest payable semi-annually in arrears.

The net proceeds of the Eurobond will provide medium term funding and help to enhance the capacity of the Bank to support its general banking purposes.

With a presence in 11 African countries, the move drives Access Bank PLC Group towards its ultimate goal of being recognised as a most-respected African Bank in the investor community, and is a great achievement for the Group as it enables its other subsidiaries to leverage off this achievement.

Says Chrisanthi Michaelides, CEO of Access Bank SA:

“Access Bank Plc group is already a recognised and respected African Bank within the global investor community and this new fund raising, which was oversubscribed by investors, is testament to the growing support being shown by investors.

The closure of such large fund raising transactions by the Parent further allows for group subsidiaries to leverage off this achievement in their domestic markets. In South Africa this supports the Access Bank South Africa strategy of maximising the raising of Rand funding and liquidity within the local SA markets.”

Michaelides notes that Access Bank South Africa will be finalising and registering its Domestic Medium Term Note (DMTN) bond programme by mid-2022, and follow this with a debut bond issuance.

“We also anticipate a positive welcome by local investors at that time,” she says.

Quality global investors

The Eurobond transaction saw significant demand from top quality investors globally including the United States, Europe (incl. the UK), Middle East, Asia and Africa, anchored by several large tickets.

On this Eurobond issuance, Dr Herbert Wigwe, Group Managing Director, says:

“At Access Bank we remain committed to our vision of becoming 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 journey. 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.”

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.