Access Bank Plc, the flagship banking subsidiary of Access Holdings Plc, has successfully redeemed its $500m senior unsecured Eurobond that matured on 21 September 2026. The bank stated that the repayment was funded entirely from its own foreign-currency liquidity, in line with its asset-liability management framework and the maturity profile established when the bond was issued. This move demonstrates the bank's ability to manage its foreign-currency funding obligations.
The Eurobond was issued in September 2021 with a five-year tenor and a 6.125 per cent coupon rate. During the five-year period, Access Bank made all semi-annual coupon payments on the bond as they fell due. The redemption discharges the bank's obligations under the Eurobond and marks the maturity of one of its major international debt instruments. This transaction has significant implications for the bank's balance sheet management.
According to the bank, the repayment was incorporated into its liquidity management framework and will have no adverse impact on its operations or regulatory liquidity requirements. Managing Director and Chief Executive Officer of Access Bank, Roosevelt Ogbonna, emphasized that the redemption demonstrated the bank's funding and liquidity management capacity. He stated that meeting this maturity from the bank's own balance sheet affirms the strength of its funding position and capital management.
The redemption comes as Nigerian banks continue to manage foreign-currency funding obligations amid tighter requirements around liquidity, capital, and balance-sheet management. Access Bank plans to maintain a diversified funding base to support growth across its markets. This approach will enable the bank to mitigate potential risks associated with foreign-currency funding.
The $500 million bond was a senior unsecured obligation, meaning it was not backed by specific collateral and ranked as a senior claim against the issuing bank. With the maturity now settled, Access Bank has removed the $500 million principal obligation from its outstanding Eurobond liabilities. Experts noted that this development reflects positively on the bank's financial management.
The bank's parent company, Access Holdings, stated that the transaction underscores the group's approach to balance-sheet management and meeting its obligations to investors. This redemption is a significant milestone for Access Bank, demonstrating its ability to manage its international debt instruments effectively.
The successful redemption of the Eurobond highlights Access Bank's commitment to maintaining a strong financial position and managing its funding obligations prudently. The bank's ability to repay the bond from its own foreign-currency liquidity reflects its robust liquidity management framework. This development is expected to enhance investor confidence in the bank.
Key points
- Access Bank redeems $500m Eurobond at maturity, funded entirely from its own foreign-currency liquidity.
- The redemption demonstrates the bank's funding and liquidity management capacity.
- The transaction underscores the group's approach to balance-sheet management and meeting its obligations to investors.
