Access Bank Sells $50m 5-Year Green Bond for Sustainable Projects

By April 28, 2022 NEWS

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

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

In the disclosure signed by the company secretary, Mr Sunday Ekwochi, Access Holdings stated that the senior unsecured debt instrument has a five-year tenor, 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 Access Bank is approaching the debt market to raise funds for projects that are friendly to the environment.

More than three years after, the company is coming again to raise funds for green projects, though not in local currency.

In the statement, Access Holdings said this new issue, which was executed through a private placement, is under the bank’s $1.5 billion Global Medium Term Note Programme and will be listed on the London Stock Exchange (LSE).

“We write to notify the NGX that our banking subsidiary, Access Bank Plc, has concluded the sale of a $50 million step-up green notes due 2027 under its $1.5 billion Global Medium Term Note Programme through a private placement,” a part of the notice said.

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

“The net proceeds from the issuance of the notes will be used by Access Bank for the financing or refinancing, in part or in full, new and/or existing projects and assets meeting the eligibility criteria set out in the bank’s green financing framework dated November 18, 2021,” it explained.

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

It confirmed that, “Access Bank’s regulator, the Central Bank of Nigeria (CBN), has given its No Objection and approval to the transaction,” assuring that the investing community would be “apprised of further developments as they occur.”

Read original story on BusinessPost