Access Bank’s $500 Million Eurobond oversubscribed
By Sahabi Abdul
Access Bank said a successful pricing of its $500 million eurobond sale saw it more than three times oversubscribed with a record haul of $1.6 billion for a Nigerian Bank.
The five-year unsecured note that matures in September 2026, comes with a yield of 6.125 percent, and interest will be paid twice a year, the bank said in a statement on Tuesday to the Nigerian Exchange.
“The net proceeds of the eurobond will provide medium-term funding and help the capacity of the bank to support its general banking,” Access Bank said in the statement.
Foreign-currency denominated debt issues have been made by Nigerian banks seeking to take advantage of relatively lower cost of funds. The funds have also helped them to hedge against naira depreciation and its weakening of their assets.