Investors Stake $1.6bn on Access Bank’s $500m Eurobond at 6.13%

By Dipo Olowookere

Eurobonds worth $500 million have been issued to offshore investors by Access Bank Plc, a notice from the financial institution has confirmed.

Last week, the Nigerian lender announced its intention to raise the fresh capital and Absa, Barclays Bank, JP Morgan and Standard Chartered were chosen as joint bookrunners, while Chapel Hill Denham and Rand Merchant Bank were selected as the financial advisors and bookrunners.

On Tuesday, the bank informed the investing community that the Eurobond sale was successful as the subscription rate was triple.

The net proceeds of the Eurobond, according to the lender, will provide medium-term funding and help to enhance the capacity of the bank to support its general banking purposes.

In the notice, Access Bank said it went to the international debt capital market with $500 million but investors, who were confident with the ability of the company to repay at maturity, staked $1.6 billion on the instrument.

Business Post reports that the order book was the largest ever for a Nigerian bank Eurobond transaction.

Also, the senior Eurobond 5-year unsecured note (144A/RegS), which was sold under the bank’s $1.5 billion global medium-term note programme, was issued with a yield and coupon of 6.125 (approximately 6.13) per cent with interest payable semi-annually in arrears.

Access Bank noted in the disclosure that, “The transaction saw a significant demand from top-quality investors globally including the United States, Europe (including the United Kingdom), Middle East, Asia and Africa, anchored by a number of large tickers.”

While commenting on the sale, the Group Managing Director of Access Bank, Mr Herbert Wigwe, stated that, “At Access Bank, we remain committed to our vision to become the world’s most respected African bank and Africa’s gateway to the world.

“The success of our $500 million senior unsecured Eurobond is yet another stride towards the realisation of that vision and underscores our investors’ confidence in the Access Bank story.

“We are pleased with the diversity of the order book and the success of this issuance further strengthens our resolve to deliver on our strategic objectives.”

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