Access Bank, a leading financial institution in Nigeria, has successfully redeemed its $500 million senior unsecured Eurobond. The bond, issued in 2021, matured on September 21, according to a statement released by its parent company, Access Holdings. This development highlights the bank's robust financial discipline and ability to meet its funding commitments. The redemption is a significant milestone for the bank, demonstrating its strong liquidity position.
The Eurobond was launched in September 2021 with a five-year tenor at a coupon rate of 6.125 percent. The bond was oversubscribed, with the order book surpassing $1.6 billion. It was issued under Access Bank's $1.5 billion Global Medium-Term Note Programme and listed on the London Stock Exchange's main market. The funds raised were used for medium-term funding and to support the bank's general banking purposes.
Access Holdings stated that the repayment underscores the bank's strong liquidity position and disciplined balance sheet management. The company also emphasized its commitment to meeting obligations to investors and stakeholders. The bank never defaulted on its semi-annual coupon payment obligation to investors, ensuring timely payments.
According to Access Bank, its foreign currency liquidity resources used to fund the Eurobond redemption were in line with its asset-liability management framework. The bank's liquidity planning and robust financial discipline enabled it to meet its funding commitments without any detrimental impact on its operations or regulatory liquidity requirements.
Roosevelt Ogbonna, Access Bank's managing director and chief executive officer, expressed satisfaction with the redemption. He stated that it reflects the strength of the bank's franchise and its commitment to meeting obligations to investors and stakeholders in a timely manner. Ogbonna also highlighted the bank's strong funding position and disciplined capital and liquidity management.
The successful redemption of the Eurobond demonstrates Access Bank's ability to manage its capital and liquidity effectively. This development is expected to enhance the bank's reputation and confidence among investors and stakeholders. The bank's commitment to transparency and timely payments has been reinforced through this redemption.
Access Bank's redemption of the $500 million Eurobond marks a significant achievement for the financial institution. The bank's strong liquidity position and disciplined balance sheet management have enabled it to meet its obligations to investors and stakeholders. This development is a testament to the bank's robust financial discipline and ability to manage its funding commitments effectively.
Key points
- Access Bank redeems $500 million Eurobond, demonstrating strong liquidity position.
- The Eurobond was issued in 2021 with a five-year tenor at a coupon rate of 6.125 percent.
- The redemption reflects the bank's commitment to meeting obligations to investors and stakeholders.
