Access Bank Plc has announced the over-subscription of its $500 million Senior Unsecured Eurobond issued last week under its $1.5 billion Global Medium-Term Note Programme.
In a notification at the Nigerian Exchange, the Nigeria’s leading bank said the offering achieved three times oversubscribed orderbook of over $1.6 billion, representing the largest orderbook ever for a Nigerian bank Eurobond transaction.
Access Bank with presence in 14 African Countries said the offer, an outstanding Nigerian bank Eurobond coupon will greatly improve its efforts to do more than banking.
The bank said with the successful pricing of the US$500 million 144A/ Reg Senior Unsecured Eurobond, the proceeds of the offer which achieved the lowest (outstanding) Nigerian bank Eurobond coupon would be used to provide medium term funding and boost the capacity of the tier -1 financial institution. .
The Senior Eurobond is a 5-year unsecured note (144A/Regs) under the Bank’s US$1. 5 billion Global Medium-Term Note Programme, and is listed on the main market of the London Stock Exchange. The bond matures in September 2026 and was issued with a yield and coupon of 6.125 percent with interest payable semi-annually in arrears.
The bank that is rated B’ stable outlook by Fitch and ‘B2’ negative outlook by Moody’s, said that the transaction saw a significant demand from top quality investors globally including United States, Europe and other continents.
“The net proceeds of the Eurobond will provide medium term funding and help to enhance the capacity of the Bank to support its general banking purposes.