The successful pricing of a $500 million extra tier one Eurobond by Access Bank Plc has been announced.

On the Nigerian Exchange Limited, the bank announced this in a press release signed by the company secretary, Sunday Ekwochi.

According to the bank, the offering reached a yield of 9.125 percent and a coupon of over 200 percent oversubscription, with an order book peaking at over $1 billion.

According to Access Bank, this additional Tier one Eurobond is a Basel III compliant Perpetual Non-Call 5.25-year Subordinated Note that will be offered on the London Stock Exchange under the bank’s medium term note program.
The Eurobond can be called at any time after October 7, 2026, subject to certain circumstances, including the permission of the Central Bank of Nigeria.

“At Access Bank, we remain totally committed to the implementation of our ambition to become the world’s most renowned African bank,” said Dr. Herbert Wigwe, group managing director of the bank.

“This remarkable transaction, which is a first in the Nigerian banking industry, significantly enhances our Tier one and total capital ratios, providing significant room for growth and ongoing execution of our strategic objectives.

the Bank’s leadership in its marketplace.”

It added that “this issuance on the back of our recently concluded $500 million senior Eurobond, underscores the formidable confidence of a diversified range of global and local investors in the Access Bank Strategy.”

Access Bank Plc as at June 30, 2021 grew its total assets to N10.06 trillion as against N8.68 trillion reported in the full year ended December 31, 2020, indicating a 16 per cent increase. The financial institution’s profit before tax hit N97.5 billion as against N74.31 billion reported in prior H1, 2020 results and accounts.