Access Bank Plc redeemed its US$500 million Senior Unsecured Eurobond on its maturity date, according to a statement from its parent, Access Holdings Plc.
In a notice on NGX, the bond was issued in September 2021 with a five-year tenor and a 6.125% coupon.
Access Holdings said the bank met every semi-annual coupon payment as and when due throughout the bond’s life.
At that rate, the coupon works out to roughly US$30.6 million a year on the principal.
The company said it funded the redemption entirely from the bank’s own foreign currency liquidity.
It described this as consistent with the bank’s asset-liability management framework and the maturity profile anticipated when the bond was issued.
It added that the repayment had been built into the bank’s liquidity management framework and had “no adverse impact” on its operations or regulatory liquidity requirements.
The statement did not disclose the size of the bank’s remaining foreign currency reserves or say whether it plans to issue new debt to replace the maturing bond.
Access Bank’s Managing Director and Chief Executive Officer, Roosevelt Ogbonna, said the redemption “reflects the strength of Access Bank’s franchise.” He said that meeting the maturity from the bank’s own balance sheet affirms the strength of its funding position and the discipline with which it manages capital and liquidity.
The bank also said it remains committed to a strong and diversified funding base, sustainable growth, and long-term value for customers, investors, regulators and other stakeholders across its markets.
Eurobond maturities are closely watched by investors in emerging-market financial institutions because they test a lender’s ability to source hard currency on schedule.
Access Bank’s on-time repayment from internal resources is a positive signal on that front, though the announcement is the company’s own account and does not include independent assessment or detailed liquidity figures.
Administrator and Writer
