Access Bank $500m Senior Unsecured Eurobond Launch Records 3X Oversubscription

 

Access Bank
Access Bank

Access Bank Plc says it has successfully launched a $500 million  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 hosted on the Nigerian Exchange Limited (NGX) website, the transaction recorded a massive interest from 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 per cent, with interest payable semi-annually in arrears.

The coupon of 6.125 per cent 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 per cent levels whilst offers are around 5.78 per cent as the unmet demand from the auction filtered into the secondary market.

Access Bank 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.