Standard Chartered Bank acted as Sole Arranger and
Sustainability Structuring Agent of a US$50 million Reg S Step-Up Puttable
Green Notes due 2027 for Access Bank Plc in the international capital market
via a private placement. The offering represents a first of its kind in Africa,
and the second Green Bond Issuance by Access Bank, following its debut Naira
Green Bond Issuance in 2019.
This
innovative puttable Green private placement for Access Bank is a 5-year Senior
Unsecured Note (Reg S) issued under Access Bank’s US$1.5 billion Global
Medium-Term Note Programme and is listed on the main market of the London Stock
Exchange.
The Bond was issued with a coupon of 5.50% in
the first two years and then steps up (on the put option date) to 7.25% in the
last 3 years to maturity, with interest payable semi-annually in arrears. This
innovative structure enabled Access Bank Plc to achieve an attractive pricing,
with a blended average cost of funding below of fair value, amidst the rising
and volatile interest rate environment.
The net proceeds from the issuance of the Bond,
will be used by Access Bank for the financing or refinancing, in part or in
full, new and/or existing projects and/or assets meeting the eligibility
criteria set out in the Bank’s Green Financing Framework dated 18 November
2021, on which S&P Global Ratings has provided a second party opinion.
This deal
was solely originated, executed and led by Standard Chartered, with our
sustainable finance team working with Access Bank to establish a Green bond
framework.
Standard Chartered’ s Executive Director,
Corporate, Commercial and Institutional Banking, Nigeria & West Africa, Mr.
Olukorede Adenowo noted that “Standard Chartered is proud to once again partner
with Access Bank on this momentous transaction. The success of this issuance
continues to demonstrate investors’ confidence in Access’s strategy as a
leading banking group out of Africa. We work with our clients across Africa to
deliver on their growth aspirations and also use our market leading position in
the international bond markets and sustainable financing space to drive
inclusive growth and development in Africa. “
Standard Chartered Bank has led and served as Joint
Lead Manager on almost all Eurobond transactions by banks in Sub Saharan Africa
since 2017, underscoring our unparalleled leadership in the space