Banking
Access Bank Not Issuing Any Eurobond in 2019
By Dipo Olowookere
Few days ago, Ecobank, a company trading its securities on the floor of the Nigerian Stock Exchange (NSE), announced the issuance of a $450 million Eurobond.
It was the first time a Nigerian lender was selling the debt instrument in almost over 17 months with the last exercise carried out by Fidelity Bank in October 2017.
According to Ecobank, the exercise was oversubscribed by investors drawn across the globe, especially from the Europe, Asia and Africa.
On March 19, 2019, Access Bank and Diamond Bank officially merged together, with the enlarged company starting full operations on April 1, 2019.
Before the merger, precisely in 2014, Diamond Bank issued a $200 million 5-year Eurobond at 8.75 percent. The notes are expected to mature next month.
Access Bank, which now controls the assets and liabilities of the defunct Diamond Bank, has promised to settle the bondholders at maturity.
With the recent Eurobond raised by Ecobank, observers are of the view that more banks may have to approach the international debt market to raise fund to improve their performance.
But one lender that is not looking in that direction at least this year is Access Bank, which raised N15 billion last month through a green bond.
The financial institution disclosed recently that it would not approach the international debt market to raise any fresh capital. For now, the company wants to focus on making its shareholders enjoy the dividend of its merger with Diamond Bank, a tier two bank in the country.
Addressing an analyst call last week for its Q1 2019 earnings, an official of the financial institution confirmed that such was not on the agenda for now.
“On the Eurobond, [it would] not [be issued] in 2019 [because] there is no conversation around coming into the market in 2019.
“We are [presently] focused on paying down the maturities [of Diamond Bank] in May and [for Access Bank in] June 2019,” the bank official told analysts at the call.
In its Q1 2019 results, Access Bank grew its post-tax profit by 86.1 percent to N41.148 billion from N22.116 billion, while its pre-tax profit went up by 64.4 percent to N45.101 billion from N27.439.
In the period under consideration, the bank improved its interest income rose to N95.142 billion from N87.238 billion, while the net interest income to N56.838 billion from N44.654 billion.
However, the fee and commission income dropped to N15.628 billion in Q1 2019 from N15.862 billion in Q1 2018.
In the results, Access Bank posted a net foreign exchange gain of N6.211 billion against the net foreign exchange loss of N6.821 billion in the same period of last year.
It was also disclosed that the earnings per share (EPS) of Access Bank grew to N1.39 in the first quarter of 2019 from 77 kobo printed in the first quarter of 2018.
By Adedapo Adesanya
Access Bank Plc, the banking subsidiary of Access Holdings Plc, has entered into a binding agreement with South African-based Bidvest Group Limited for the acquisition of 100 per cent equity stake in Bidvest Bank Limited.
The deal for the 24-year-old South African lender is due to be completed in the second half of 2025, upon regulatory approval.
This shows Access Bank’s further expansion plans in line with goals set by its late founder, Mr Herbert Wigwe.
The agreement to acquire 100 percent stake in Bidvest Bank reflects Access Bank’s commitment to strengthening its footprint in South Africa and consolidating on its position as the continent’s gateway to global markets as it seeks to optimise the benefits of recent acquisitions and accelerate its transition towards a greater focus on efficiencies.
Bidvest Bank, founded in 2000 is a niche and profitable South African financial institution providing a diverse range of services, including corporate and business banking solutions and diverse retail banking products.
As of its year ended June 2024, Bidvest Bank reported total assets equivalent of $665million and audited profit before tax of $20million.
Upon conclusion of this acquisition, Bidvest Bank will be merged with the bank’s existing South African subsidiary to create an enlarged platform to anchor the regional growth strategy for the SADC region.
This is coming just as the bank opened a new branch in Malta as part of efforts to focus on international trade finance after obtaining a banking licence from the European Central Bank (ECB) and the Malta Financial Services Authority (MFSA).
Access Bank said the licence marks a transformative milestone in bolstering Europe-Africa trade flows.
The Maltese branch was established by Access Bank UK Limited, the subsidiary of Access Bank Plc, which is also the subsidiary of Access Holdings Plc, which is listed on the Nigerian Exchange (NGX) Limited.
By Modupe Gbadeyanka
To strengthen Europe-Africa trade ties, Access Bank has opened a new branch in Malta. It will focus on international trade finance, employing approximately 30 people in its initial phase, with plans for controlled expansion over time.
It was learned that this Maltese branch was established by Access Bank UK Limited, the subsidiary of Access Bank Plc, which is also the subsidiary of Access Holdings Plc, which is listed on the Nigerian Exchange (NGX) Limited.
Access Bank Malta Limited commenced operations after obtaining a banking licence from the European Central Bank (ECB) and the Malta Financial Services Authority (MFSA).
Access Bank said the licence marks a transformative milestone in bolstering Europe-Africa trade flows.
Malta, a renowned international financial centre, and a gateway between the two continents, is strategically positioned to play a pivotal role in advancing commerce and fostering economic partnerships.
This strategic expansion into Malta enables The Access Bank UK Limited to leverage growing trade opportunities between Europe and Africa.
It underscores the organisation’s commitment to driving global trade, financial integration, and supporting businesses across these regions.
“By establishing operations in Malta, we will gain a foothold in a market that bridges European and North African economies, moving us one step closer to our goal of becoming Africa’s Gateway to the World.
“It further enhances our bank’s capacity to support clients with innovative solutions tailored to cross-border trade and investment opportunities,” the chief executive of Access Bank, Mr Roosevelt Ogbonna, stated.
“Europe has emerged as Africa’s leading trading partner, driven by initiatives such as the Economic Partnership Agreements between the EU and African regions and the African Continental Free Trade Area (AfCFTA).
“With Europe-Africa economic relations entering a new phase, The Access Bank Malta Limited is ideally positioned to deepen trade and meet the financing and banking needs of our clients in these expanding markets,” the chief executive of Access Bank UK, Mr Jamie Simmonds, commented.
Also speaking, the chief executive of Access Bank Malta, Renald Theuma, said, “Malta is uniquely positioned as a bridge between Europe and Africa, making it an ideal location for our subsidiary. This move allows The Access Bank Malta Limited to engage more closely with customers in Europe and deliver tailored financial solutions that drive growth and connectivity across both continents.”
By Adedapo Adesanya
The International Finance Corporation (IFC) and Goldman Sachs have announced a new partnership with African banks, including Nigeria’s Zenith Bank and Stanbic IBTC Nigeria to support the Goldman Sachs 10,000 Women initiative, a joint programme launched in 2008 to provide access to capital and training for women entrepreneurs globally.
The two Nigerian banks are part of nine financial institutions from across Africa which have agreed to join the 10,000 Women initiative committing to leverage the business education and skills tools the programme provides to create more opportunities for women entrepreneurs across the continent by providing access to business education.
Others banks include Stanbic Bank Kenya, Ecobank Kenya, Ecobank Cote d’Ivoire, Equity Bank Group, Banco Millenium Atlantico – Angola, Baobab Group, and Orange Bank.
Speaking on this, Ms Charlotte Keenan, Managing Director at Goldman Sachs said – “10,000 Women has had a powerful impact to date, but we know that there are more women to reach and more potential to be realized.
“We are delighted to partner with IFC to supercharge the growth of women-owned businesses across Africa, and mainstream lending to female business leaders. We remain committed to supporting entrepreneurs with the access to education and capital that they need to scale.”
Since 2008, the 10,000 Women initiative has provided access to capital and business training to more than 200,000 women in 150 countries.
“This expanded initiative marks a significant step forward in creating equitable economic opportunities for women in Africa, enabling them to build stronger, more resilient businesses and to realize their entrepreneurial goals,” said Ms Nathalie Kouassi Akon, IFC’s Global Director for Gender and Economic Inclusion.
Goldman Sachs’ 10,000 Women initiative complements the Women Entrepreneurs Opportunity Facility (WEOF), launched in 2014 by Goldman Sachs and IFC as the first-of-its-kind global facility dedicated to expanding access to capital for women entrepreneurs in emerging markets.
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