Book Building has commenced for the N15billion Green Bond Issuance by Access Bank Plc. The 5-year fixed rate senior unsecured Green Bond 2019-2024 has coupon band of 14.9percent to 15.10percent per annum.
The Book Building which commenced on Thursday February 21, 2019 closes on Thursday February 28, 2019 at 5pm; while distribution of allocation letters will be on same day (Thursday February 28, 2019).
The Bond is the first ever Climate Bonds Standard Certificate Corporate Green Bond issued in Africa. The issue has been awarded a B2 rating by Moody’s; was verified by PwC (UK) and certified by the Climate Bond Initiative as having met the climate bond standards.
Access Bank Plc had on January 18, 2019 notified the Nigerian Stock Exchange (NSE) that the Securities and Exchange Commission (SEC) approved the Book Build in respect of the proposed Green Bond (with climate credentials) being issued by the bank.
“With our pace setting experience in the mainstreaming of sustainability in our business operations, we are confident that this issue will further help in supporting environmentally friendly investors to meet their investment objectives while simultaneously supporting the bank’s customer towards realizing growth opportunities in the fast-developing low carbon economy,” said Herbert Wigwe, group managing director, Access Bank Plc.
It will be recalled that the Bank had in June 2018 launched the Nigerian Green Bond Market Development Programme in partnership with FMDQ OTC Securities Exchange and the Securities and Exchange Commission (SEC).
The N15billion Green Bond Issue proceeds will be used to finance eligible green projects that meet the climate bond initiative (CBI) standards. The Issue will serve as a turning point for Nigeria, attracting both domestic and international investors and will set the pace for other Nigerian corporates to raise green capital.
Iheanyi Nwachukwu
