Access Bank issues a $50 million 5-year green bond to fund sustainable projects

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

Access Holdings Plc, the lender’s parent company, confirmed the transaction in a notice filed with the Nigerian Exchange (NGX) Limited.

Access Holdings stated in a disclosure signed by the company secretary, Mr Sunday Ekwochi, that the senior unsecured debt instrument has a five-year term and will mature on May 3, 2027.

The notes would be used for projects that meet the “criteria set out in the bank’s green financing framework dated November 18, 2021,” according to the firm.

This is not the first time Access Bank has approached the debt market to raise funds for environmentally friendly projects.

More than three years later, the company is returning to raise funds for green projects, but this time in foreign currency.

According to the statement, this new issue, which was completed through a private placement, is part of the bank’s $1.5 billion Global Medium Term Note Programme and will be listed on the London Stock Exchange (LSE).

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

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“The notes will be issued in registered form, with a settlement date of May 3, 2022 and a maturity date of May 3, 2027,” the company said.

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

 

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

 

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