Access Bank has paid off the $500 million senior unsecured Eurobond it issued in 2021. This happened after the note matured on 21 September. The parent company, Access Holdings, shared the news in a statement on Monday.
"The repayment shows the Bank’s strong liquidity position, disciplined balance sheet management, and commitment to meeting its obligations to investors and stakeholders," Access Holdings said.
The statement added, "The redemption clears the Bank’s obligations under the Eurobond and reflects careful liquidity planning, strong financial discipline, and the ability to meet its funding commitments."
Access Bank assured that it never failed to make its semi-annual coupon payments to investors. This means they received their payments as scheduled.
In September 2021, the bank launched the Eurobond, which was set for five years and had a coupon rate of 6.125 percent. The bond was oversubscribed more than three times, with orders exceeding $1.6 billion.
The Eurobond was issued under its $1.5 billion Global Medium-Term Note Programme and listed on the main market of the London Stock Exchange.
Access Holdings used the funds from this debt to support medium-term funding and strengthen the bank’s ability "to support its general banking purposes."
Access Bank mentioned that its foreign currency liquidity resources used for the Eurobond repayment matched its asset-liability management framework and the maturity profile planned at the time of issuance.
The bank explained that the repayment was part of its liquidity framework and did not harm its operations or regulatory liquidity needs.
Roosevelt Ogbonna, Access Bank’s managing director and CEO, said, "This redemption shows the strength of Access Bank’s franchise, the discipline of our balance sheet management, and our commitment to meeting obligations to investors and stakeholders on time."
He added, "Meeting this maturity from our own balance sheet confirms our strong funding position and how carefully we manage our capital and liquidity."
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