Amid massive global interests from quality investors all over the world, Access Bank Plc has successful launching a milestone $500 million 144A/RegS Senior Unsecured Eurobond, as part of its Global Medium-Term Note Programme.
This is contained in a notice signed by the company’s secretary, Sunday Ekwochi, and made available on the website of the Nigerian Exchange Limited (NGX), as seen by naijabusiness.
Naijabusiness.com.ng gathered that the transaction recorded a massive interest from top quality investors globally, including the United States, Europe, Middle East, Asia and Africa, anchored by a number of large tickets.
The offering achieved the lowest (outstanding) Nigerian bank Eurobond coupon, supported by an over 3x oversubscribed orderbook of over $1.6 billion, which represents the largest orderbook ever for a Nigerian bank Eurobond transaction.
It is important to note that Access Bank launched the massive $500m Eurobond, following the imminent retirement of its existing $300m Eurobond due for repayment on October 2021. In a bid to refinance its debts, bearing in mind the restrictive FX policy stand of monetary authorities, the lender opted to issue a fresh Eurobond, leading to this massive offer.
About the latest offer
The recent offer- Senior $500m Eurobond, is a 5-year unsecured note under the Bank’s $1.5billion Global Note programme. The bond is due to mature on the 21st of September, 2026, and was issued with a yield and coupon of 6.125%, payable semi-annually in arrears. The coupon of 6.125% is another first in the corporate Eurobond issuance space.
Interestingly, the bond is already trading at a premium from issue levels with bids around 5.89% levels whilst offers are around 5.78% as the unmet demand from the auction filtered into the secondary market. (101/101.50 indicative price)
Absa, Barclays Bank, JP Morgan and Standard Chartered acted as Joint Bookrunners on the transaction, and Chapel Hill Denham and Rand Merchant Bank acted as Financial Advisors and Joint Bookrunners.
How proceeds from the offering will be deployed?
Commenting on what it intends to use the proceeds for, the lender revealed that the net proceeds of the Eurobond will be used to provide medium term funding in a bid to enhance its capacity and support its general banking purposes.
Furthermore, the Group Managing Director of Access Bank, Dr Herbert Wigwe seized the opportunity to re-echo the bank’s vision, he said: ’’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 US$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.’’