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Access Bank raises $50m from London stock market

Access Bank gets CBN's nod to acquire Kenya’s Transnational bankAccess Holdings Plc has announced that its banking subsidiary, Access Bank, secured $50 million from the international capital market via a private placement on the London Stock Exchange (LSE).

In a statement released on Wednesday to the investing public and the capital market authority, Nigerian Exchange Limited (NGX), Access Holdings said the fund was raised under Access Bank’s $1.5 billion Global Medium-Term Note Programme.

The dollar offering is the second Green Bond issuance by Access Bank, having offered the first Naira Green Bond issuance in 2019. The $50 million capital raised by the financial institution is due for 2027, and will be used to fund new and existing projects and assets.

Read also: Access Holdings, Access Bank constitute boards (SEE LIST)

The statement reads that Access Bank has “successful priced a US$50 million Reg S Step-Up Green Notes due 2027 in the international capital market via a private placement.”

It further stated that, “The Step-Up Puttable Green Bond is a 5-year Senior Unsecured Note (Reg S) under Access Bank’s US$1.5 billion Global Medium-Term Note Programme and is listed on the main market of the London Stock Exchange.

“The Green Bond matures in May 2027 with an investor put option, commencing May 2024. The Green Bond was issued with a coupon of 5.50% in the first two years and then steps up (on the put option date) to 7.25% in the last 3 years to maturity, with interest payable semi-annually in arrears.

“This innovative structure enabled the Bank to achieve an attractive pricing, with a blended average cost of funding below fair value, amidst the rising and volatile interest rate environment”, Access Holdings stated.

The post Access Bank raises $50m from London stock market appeared first on Latest Nigeria News | Top Stories from Ripples Nigeria.

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