Access Bank Plc yesterday launched a highly successful $400 million seven-year Tier 2 capital issuance, which is callable at the end of five years. This transaction follows the bank’s highly successful $350 million five-year senior debt issued in 2012.
The bank recently got shareholders’ approval to raise $1 billion capital from local and international markets. The approval was in line with the bank’s five-year corporate strategy as well as its capital plan.
Speaking following the pricing of the Eurobond, which is the first step in its capital raising, Access Bank Group Managing Director/Chief Executive Officer Herbert Wigwe said: “This bond, the largest Tier 2 issuance by any Nigerian bank, will provide us with the additional capacity to focus on our strategy and deliver superior returns to shareholders.
“It entrenches our bank comfortably as a Tier 1 bank and reflects the strong risk management framework which underpins our lending and growth strategies.”
He added: “The process that has been followed to achieve this successful bond launch has proved that indeed Access Bank is a business that adheres to the highest possible international standards, having achieved the fund raising under both the US SEC’s Reg S and Rule 144A.
“The support of international bond investors gives us faith in our strategy of ethical growth, which we call sustainable banking.”
The funds raised from this bond would provide Access Bank with additional capacity to further consolidate its leading corporate banking business without any currency mismatch.
It also delivers additional capital headroom to support the bank’s increasing market share in the SME and retail segments.
The global book runners for the bond issue were Citi, Deutsche Bank and Goldman Sachs.
Access Bank Plc is rated BB- (Standard & Poor’s) and B (Fitch).