Yesterday, Access Bank Plc launched a highly successful $400 million seven-year Tier 2 capital issuance, which is callable at the end of five years. This transaction follows the bank’s highly successful $350 million five-year senior debt issued in 2012.
The bank recently got shareholders’ approval to raise $1 billion capital from local and international markets. The approval was in line with the bank’s five-year corporate strategy as well as its capital plan.
Speaking after the pricing of the Eurobond, the bank’s Group Managing Director/Chief Executive Officer Herbert Wigwe said: “This bond, the largest Tier 2 issuance by any Nigerian bank, will provide us with the additional capacity to focus on our strategy and deliver superior returns to shareholders. It entrenches our bank comfortably as a Tier 1 bank and reflects the strong risk management framework which underpins our lending and growth strategies.”
The funds raised from this bond would provide Access Bank with additional capacity to further consolidate its leading corporate banking business, it also delivers additional capital headroom to support the bank’s increasing market share in the SME and retail segments.