By Dipo Olowookere
The tier-2 fixed rate subordinated unsecured bond worth N30 billion issued by Access Bank Plc recently received huge subscriptions from investors.
The notes, which were auctioned to local investors, have maturity of seven years and are callable after five years. They were issued to further strengthen the lender’s funding base and create more value for shareholders of the company.
According to the Group Managing Director/CEO of Access Bank, Mr Herbert Wigwe, “We are a bank with a rigorous and disciplined capital plan and the action taken today is in line with our 5-year strategic plan.
“This is to ensure a strong capital buffer at all times and support our low risk appetite.
“Following the merger, we identified some synergies and combined with this issue, we are confident of our capacity to attain the next level of being a more efficient bank.”
It was gathered that Chapel Hill Denham Advisory Limited acted as the lead issuing house, while the duo of Coronation Merchant Bank Limited and First-Ally Capital Limited were the joint issuing house.
The oversubscription of the N30 billion bond further buttressed the confidence investors repose in the financial institution, which is aiming the number bank in Africa.
