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Access Bank $500m Eurobond oversubscribed by 200%

Felix Oloyede

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Access Bank completes BancABC Botswana acquisition

As part of its $1.5billion funding plan Access Bank Plc issued a further $500million Eurobond Offer that was 200 per cent oversubscribed last week.

The bond was offered at a coupon roughly three per cent higher than the earlier September 2021 Issue. Notwithstanding, the higher coupon and the oversubscription of the Offer suggest that international investors were prepared to take up the private Issues of top-quality emerging market corporations at the right price.

Access Bank has issued its third offering of $500million Additional Tier 1 (AT 1) Eurobond Offer as part of a broad 1.5billion funding Programme.

The offer was at a coupon pricing of 9.125per cent with an over 200 per cent order book subscription which peaked at over $1billion. The oversubscription of the current Issue was 100 per cent lower than the earlier September 2021 issue.

Strong investor confidence towards the Offer indicated a positive perception of the bank’s credit history and management strategy.

The current Eurobond Issue comes 17 days after the bank issued a $500million Unsecured instrument with a 5-year tenor and a coupon rate of 6.125 per cent with interest payable semi-annually in arrears. The instrument was oversubscribed three (3 )times, peaking at $1.6billon. Both the present and earlier Issues became listed on the London Stock Exchange (LSE).

Access bank operates in 11 African Countries, Europe, the Middle East, and Asia, reflecting risk diversification of the institution’s earnings. Although the Nigerian segment of the bank accounts for the most significant contribution in terms of profit, the H1 2021 result shows a reduction in profit contribution of the Nigerian business and an increase in profit before tax (PBT) from the rest of Africa and Europe.

 

 

 

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