Access Bank announces dual listing of N15bn corporate green bond
…Market cap hits N231bn as NSE delists Diamond Bank shares
Temitope Adebayo
Following the formal approval of the bond by the Securities and Exchange Commission (SEC), Access Bank Plc on Monday announced N15billion dual-listing of a fully certified Green Bond on the FMDQ OTC Securities Exchange and the Nigerian Stock Exchange.
Also, with additional 35,545,225,622 ordinary shares of 50 Kobo each, the lender has hits N231 billion in market capitalisation on Monday when its shares price appreciated by N0.05 or 0.78 per cent to close at N6.50 per share.
It is, however, worthy of note that the bond is the first of its kind to be issued by an African corporate and represents a major milestone in the development of the local green finance market.
The N15 billion, 5-year Fixed Rate Senior Unsecured Green Bond is rated AA- by Agusto& Co, the underlying framework is verified by PwC (UK) and certified by the Climate Bond Initiative as having met the Global Climate Bonds Standard.
The issuance was fully subscribed by way of bookbuild. The Bond is priced at a coupon of 15.5 per cent, with participation from a wide range of asset managers and pension fund administrators.
The listing of the bond closely follows the completion of the Bank’s merger with Diamond Bank and the launch of its new brand identity that fuses the Bank and Diamond Bank’s visual identities symbolizing their shared philosophy.
The Green Bond issuance highlights the Bank’s commitment to sustainability and its status as a pioneer in green financing in both the domestic and international capital markets.
The bond comes amidst a global drive for responsible and sustainable green financing and will allow the financing of new loans and refinancing of existing loans in accordance with the Bank’s Green Bond Framework.
It will support projects directed at flood defence, solar generation facilities and agriculture.
Speaking on the occasion of this landmark listing, the Group Managing Director/CEO of Access Bank, Herbert Wigwe, said, “At Access Bank we are a pioneer in both domestic and international capital markets, leading the way with our commitment to sustainable banking.
We hope that this bond issuance inspires other African companies to support the long-term development of the green finance market whilst simultaneously realizing the growth potential of the fast-developing low carbon economy.”
Meanwhile, Access bank listed additional shares arising from the scheme of the merger between Access Bank and Diamond Bank that was concluded on April 1, 2019.
The Nigerian Stock Exchange (NSE) also announced the delisting of Diamond Bank’s 23,160,388,968 ordinary shares from its daily official list of the exchange.
