Nigeria’s Access Bank raises $500 mln 5-year Eurobond at 6.1% coupon/yield
…3x oversubscribed to $1.6 bln
…Interest payable semi-annually
By Oludare Mayowa
Nigeria’s Access Bank said it has raised $500 million worth of Eurobond with 5-year tenor at 6.125 percent yield/coupon to provide medium term funding and enhance its capacity to support general banking purposes.
In a regulatory filing with the Nigerian Exchange Group (NGX), the lender with presence in 11 African countries said the note received oversubscribed order book of over $1.6 billion, “which represents the largest orderbook ever for a Nigerian bank Eurobond transaction.”
It said the senior Eurobond is a 5-year unsecured note… under the bank’s $1.5 billion Global Medium-Term Note Programme and is listed on the main market of the London Stock Exchange.
The bond, according to the lender will mature in September 2026 and was issued with a yield and coupon of 6.125 percent interest payable semi-annually in arrears.
“The net proceeds of the Eurobond will provide medium term funding and help enhnace the cpacity of the bank to support its general banking purpose,” the lender said in the filing.
It said the transaction saw a significant demand from top quality investors globally incuding the United States, Europe, UK, Middle East, Asia and Africa.
In his comment on the outcome of the Eurobond successful launch, the chief executive of the bank, Herbert Wigwe said the bank remain committed to its vision to become world’s most respected African bank and 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,” Wigwe said.
It would be recalled that the bank last week announced the appointment of four lenders, which include Absa, JP Mrgan, Barclays Bank, Standard Chartered to act as joint bookrunner on the transaction and local investment financial firm, Chapel Hill Denham and Rand Merchant Bank to act as financial advisors and joint bookrunners.
In a regulatory filing on the NGX, the lender said it has appointed the six lenders as financial advisors and joint book-runners for the purpose of preparing the market for raise unspecified amount US dollar denominated 5-year fixed rate note.