Access Bank redeems $500 million Eurobond

Access Bank has redeemed the $500 million senior unsecured Eurobond it issued in 2021, following the maturity of the note on 21 September, its parent company, Access Holdings, said in a statement on Monday.

“The repayment underscores the Bank’s strong liquidity position, disciplined balance sheet management, and continued commitment to meeting its obligations to investors and stakeholders,” Access Holdings stated.

“The redemption discharges the Bank’s obligations under the Eurobond and reflects the Bank’s prudent liquidity planning, robust financial discipline, and strong capacity to meet its funding commitments,” it added.

It noted that it never defaulted on its semi-annual coupon payment obligation to investors, ensuring they received their periodic payments as and when due.

The lender had, in September 2021, launched the Eurobond with a five-year tenor at a coupon rate of 6.125 per cent, which was oversubscribed more than three times, with the order book surpassing $1.6 billion.

Issued under its $1.5 billion Global Medium-Term Note Programme, the security was listed on the London Stock Exchange’s main market.

Access Holdings raised the debt at the time for medium-term funding and to bolster the bank’s capacity “to support its general banking purposes.”

Access Bank said its foreign currency liquidity resources, used to fund the Eurobond redemption, were in line with its asset-liability management framework and the maturity profile anticipated at issuance.

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According to the lender, the repayment was integrated into the bank’s liquidity framework and has no detrimental impact on its operations or regulatory liquidity requirements.

“This redemption reflects the strength of Access Bank’s franchise, the discipline of our balance sheet management, and our continued commitment to meeting obligations to investors and stakeholders in a timely and transparent manner,” Roosevelt Ogbonna, Access Bank’s managing director and chief executive officer, said.

“Meeting this maturity from our own balance sheet affirms the strength of our funding position and the discipline with which we manage our capital and liquidity,” he added.