Access Bank Concludes Sale Of $50 Million Step-Up Green Notes To Be Due In 2027

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Herbert WigweAccess Bank Plc said it had concluded the sale of its $50,000,000 Step-Up Green Notes which would be due in 2027.

This was disclosed in a press release titled “ISSUANCE OF GREEN SENIOR UNSECURED NOTES BY OUR BANKING SUBSIDIARY- ACCESS BANK PLC”.

The Notes were issued in a private placement under Access Bank’s $1,500,000,000 Global Medium Term Note Program. The net proceeds from the Notes will be utilized by Access Bank to finance or refinance new and existing projects and assets.

The Bank stated “We write to notify Nigerian Exchange Limited (the “NGX”) that our banking subsidiary Access Bank PIc (“Access Bank” or the “Bank”) has concluded the sale of a U.S.$50,000,000 Step-Up Green Notes due 2027 (the “Notes”) under its U.S.$1,500,000,000 Global Medium Term Note Programme through a private placement.”

The primary objective of the Notes would be to finance new or existing projects. The bank said “The Notes will be issued in registered form with a settlement date of 03 May 2022 and maturity date of 03 May 2027. 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, of new and/or existing projects and/or assets meeting the eligibility criteria set out in the Bank’s Green Financing Framework dated 18 November 2021.”

The Bank stated that the apex bank has given approval for the transition.

The Notes will also be listed on the London Stock Exchange and registered under the Reg S rules. Access Bank’s regulator, the Central Bank of Nigeria has given its ‘No Objection’ and approval to the transaction.” It said.

Access Bank’s total operating expenses for 2021 increased by 14% to N371 billion, compared to N326 billion in 2020, due to a combination of reasons including high inflation, currency rate movement, and the expanded franchise from recent acquisitions.

According to Access Bank, operating expenses from the new subsidiary in Guinea, as well as recent acquisitions in Botswana, Mozambique, South Africa, and Zambia, totaled N25.3 billion, causing operating expenses to rise by 6% year on year to N345.8 billion.

Also, following the completion of the plan of arrangement between Access Bank Plc and its shareholders, Access Holdings Plc announced modifications and additions to the board of directors of its banking subsidiary, Access Bank Plc.

 

 


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