Access Bank sells $50 million 5-year green bond for sustainable projects

By Dipo Olowookere

One of Nigeria’s leading financial institutions, Access Bank Plc, has sold green bonds worth $50 million to investors interested in funding sustainable projects around the world.

The transaction was confirmed by the lender’s parent company, Access Holdings Plc, in a notice filed with the Nigerian Exchange (NGX) Limited.

In the statement signed by the company secretary, Mr. Sunday Ekwochi, Access Holdings said the senior unsecured debt instrument has a term of five years, maturing on May 3, 2027.

According to the firm, the notes would be used for projects that meet the “criteria set out in the bank’s green financing framework dated November 18, 2021”.

This is not the first time that Access Bank has approached the debt market to raise funds for environmentally friendly projects.

In March 2019, the leading banking institution sformer value of 15 billion naira green bond to investors at 15.50% for a duration of 5 years. They were subsequently listed on the NGX, the FMDQ Securities Exchange and the Luxembourg Stock Exchange (LuxSE).

More than three years later, the company returns to raise funds for green projects, but not in local currency.

In the statement, Access Holdings said the new issue, which was executed through a private placement, falls under the bank’s $1.5 billion global medium-term note program and will be listed on the London Stock Exchange (LSE).

“We are writing to advise NGX that our banking subsidiary, Access Bank Plc, has completed the sale of $50 million progressive green notes due 2027 under its $1.5 billion global medium-term note program. dollars through a private placement,” part of the notice said.

“The notes will be issued in registered form with a settlement date of May 3, 2022 and a maturity date of May 3, 2027,” he added.

“The net proceeds from the issue of the Notes will be used by Access Bank for the financing or refinancing, in whole or in part, of new and/or existing projects and assets meeting the eligibility criteria set out under green funding from the bank dated November 18, 2021,” he explained.

“The Notes will also be listed on the London Stock Exchange and registered under Reg S rules,” Access Holdings added.

He confirmed that “Access Bank’s regulator, the Central Bank of Nigeria (CBN), has given its No objection and approval of the transaction,” ensuring that the investment community would be “informed of further developments as they occur.”

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