Access Bank Plc has announced the successful launching of a $500 million Senior Unsecured Eurobond as part of its Global Medium-Term Note Programme.
In a statement released to the Nigerian Exchange Limited and the investing public, the bank said the five-year unsecured note (144A/RegS) was oversubscribed by more than three times at $1.6bn on its order book.
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 senior Eurobond is listed on the London Stock Exchange, matures in September 2026 and was issued with a yield and coupon of 6.125 per cent with interest payable semi-annually in arrears.
The offering achieved the lowest (outstanding) Nigerian bank Eurobond coupon, supported by an over 3x oversubscribed order book of over $1.6 billion, which represents the largest order book ever for a Nigerian bank Eurobond transaction.
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).
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.