Access Bank Plc has notified dealing members of the Nigerian capital market, of the listing of its N30 billion, 7-Year 15.5% Fixed Rate Subordinated Unsecured Bonds on the Nigerian Stock Exchange (NSE). The bonds, which were on Tuesday, September 17, 2019, listed on the Daily Official List of the nation’s bourse would be due by 2026.
In view of the listing of the bonds, holders of the bonds can exit if they wish to do so before maturity.
Prior to this development, the lender had secured a ‘no objection’ from the Central Bank of Nigeria (CBN) and the Nigerian Stock Exchange (NSE) to the N30 billion tier-II bond issuance it concluded recently. This was disclosed in a statement issued by the bank’s Secretary, Sunday Ekwochi.
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Access Bank had finalised the process for the issuance of the bond that would be due in 7 years’ time.
What you should know: The bond will mature in seven years and is callable after five years. The issuing houses are Chapel Hill Denham Advisory Limited, Lead Issuing House, Coronation Merchant Bank Limited and First-Ally Capital Limited.
Access Bank’s Group Managing Director, Herbert Wigwe, was quoted to have said the Tier II N30 billion subordinated unsecured bond issued by the bank to strengthen its funding base was oversubscribed.
Understanding Bonds: A bond is a fixed income instrument representing a loan made by an investor to a borrower (typically corporate or governmental).
Bonds are used by companies, municipalities, states, and sovereign governments to finance projects and operations. Owners of bonds are debtholders or creditors of the issuer.
[READ ALSO: Access Bank’s N30bn Tier II Bond oversubscribed – Wigwe]
Access Bank’s financial results: The lender had earlier released its half-year financial results for the period ended Sunday, June 30, 2019. In its H1 2019 financial statements published earlier on the Nigerian Stock Exchange (NSE) website, the lender disclosed that it experienced a 59% increase in its profit after tax.
Access Bank, however, traded N7.35 in its last trading session on the NSE.