Access Bank redeems $350 million Eurobond
Access Bank Plc has announced the final redemption of the $350million Eurobond Notes due July 25, 2017.
The Securities were issued in 2012 by Access Finance B.V. a direct, wholly owned subsidiary of the Bank on the back of an unconditional and irrevocable guarantee of the Bank. In October 2016, holders of $113 Million of this note elected to exchange same for a new 5 year bond issued by the bank at the time.
Upon maturity of the Eurobond in July 2017, the outstanding portion of $237million as well as the final coupon value of $8.69million was redeemed from the bank’s available cash reserves.
Access Bank has continued to maintain a robust balance sheet, supported by its strong liquidity position. The implementation of a disciplined capital and liquidity plan ensured that the Bank was proactive and focused in raising capital in the International capital market. Key successful Eurobond transactions from the market include: US$350 million (2012), US$400 million Subordinated Notes and the US$300 million Senior Notes comprising US$113 Million exchange and US$187 million new notes (2016).
According to the bank, the notes was issued at an extremely difficult macro–economic condition in 2016. Nonetheless, the success of the transaction, the first during the period, repositioned the Nigerian market in a positive light, following a year of volatile market conditions, and paved the way for other corporates to gain access to the market.
According to the Group Managing Director/CEO, Herbert Wigwe, “Access Bank’s ability to redeem the $350million Eurobond Notes highlights the resilience of our balance sheet and the efficiency of our asset and liability management process, especially in the face of a macro underlined by FX illiquidity, double digit inflation and currency devaluation. By building a robust risk management culture and sustainable capital & liquidity management strategy, the Bank has positioned itself to compete and win in the challenging, but recovering macro condition.”
Access Bank has continued to leverage its corporate strategy and an experienced Board and Management, to consistently deliver solid performance. The recent re-affirmation of its credit ratings by several credit rating agencies as well as an upgrade to A a- from A+ by Agusto, reinforces the bank’s strong fundamentals.
Access Bank Plc. is a full service commercial Bank operating through a network of 385 branches and service outlets located in major centres across Nigeria, Sub Saharan Africa, and the United Kingdom with representative offices in China, Lebanon and India.
Listed on the Nigerian Stock Exchange in 1998, the Bank serves its various markets through four business segments: Personal, Business, Commercial and Corporate & Investment Banking. The Bank has over 830,000 shareholders including several Nigerian and International Institutional Investors and has enjoyed what is arguably Africa’s most successful banking growth trajectory in the last twelve years ranking amongst Africa’s top 20 banks by total assets and capital in 2016.
