Banking
Luxembourg Stock Exchange Lists Access Bank’s N15bn Green Bond
By Osigbemhe Apeaye
The Luxembourg Stock Exchange (LuxSE) has successfully listed the N15 billion green bond issued by Access Bank Plc after it was initially admitted on the Nigerian Stock Exchange (NSE).
The listing of the eco-friendly bond represents a major milestone in the development of sustainable financing in Nigeria.
The cross-listing of this 15.50 percent fixed rate green bond with five-year maturity has enjoyed many firsts including the first-ever climate bonds standard certified corporate green bond to be issued in Africa; the first to be listed on the NSE in 2019; and now, the first successful cross-listing of a bond born out of the partnership between NSE and LuxSE.
According to the World Economic Forum’s Global Risks Report, the top 5 risks in the world today closely related to climate change issues.
There is, therefore, an increased urgency to reverse recent environmental trends such as ravaging bushfires, extremes of temperatures, floods, cyclones and season disruptions that have made the effects of climate change even more real.
These developments have thrust the concept of sustainable financing into the limelight, allowing products like Green Bonds to gain increasing significance.
It is, therefore, no surprise that the green bond market has witnessed tremendous growth globally with a total of $181 billion raised from global investors in 2019, representing a 14-fold increase from the $13 billion raised in 2013.
On the demand side, there has been heightened consideration of Environment, Social and Governance (ESG) factors in the demand for profitable investment products.
Looking at the Nigerian market, notable milestones have been achieved through the collaboration of public and private stakeholders. In 2016, NSE boldly reached out to the Ministry of Environment with a proposal for the issuance of a green bond which was embraced and championed by former Minister of Environment and now Deputy Secretary General of the United Nations, Mrs Amina Mohammed. This move led to a series of partnerships and innovations that have delivered gradual uptake in this market segment.
Among these were the first ever green bonds conference which held at the Stock Exchange House, Lagos and was headlined by Nigeria’s Vice President, Professor Yemi Osinbajo;
Also, is the issuance of the first 5-year N10.69 billion sovereign and certified green bond from the Nigerian government under its Ministry of Environment and the Debt Management Office (DMO).
There is further the subsequent issuance of a 7-year, N15 billion sovereign green bond which was well received by investors with an over-subscription of 220 percent.
In addition, there was the listing of Access Bank Plc’s N15 billion green bond and North South Power Company Limited’s N8.5 billion Corporate Infrastructure Green Bond.
Lastly, there was the signing of a Memorandum of Understanding between the NSE and the LuxSE to promote cross listing of bonds and foster the growth of sustainable finance in Nigeria.
The green bonds market presents great opportunities to reap value if it continues to enjoy the unwavering commitment of key capital market stakeholders.
Access Bank has pledged its support to the global climate change mitigation and adaptation agenda which seeks to promote responsible green lending globally.
Group Managing Director, Access Bank Plc, Mr Herbert Wigwe, affirmed that, “The cross-listing of the bond will make a material contribution to address climate change and provide institutional investors with access to a deep pool of green capital domestically and internationally.”
On its part, the NSE has expressed its resolute commitment to the development of a sustainable capital market in Nigeria.
The Chief Executive Officer of NSE, Mr Oscar Onyema, has been reported to have said, “We will continue to maintain a dedicated sustainable market segment which provides issuers, asset managers and investors, access to green, social, sustainable, or ESG-focused securities.
“Asides Green Bonds, this segment will also promote the development of green labelled Fixed Income Products, Indices and Exchange Traded Products (ETFs) that help direct funding of green projects and environmentally aligned issuers as well as the green transition that ensures market resilience to the economic impacts of climate change.”
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.
By Aduragbemi Omiyale
In recognition of its unwavering commitment to fostering access to financing for Nigerian micro, small and medium enterprises (MSMEs), Development Bank of Nigeria Plc has been rewarded with the Financial Inclusion Leadership Award at the Champions of Inclusion Nigeria Financial Inclusion Awards.
This was at the 2024 International Financial Inclusion Conference (IFIC) organised by the Central Bank of Nigeria (CBN) in collaboration with the World Bank and other stakeholders.
The chief executive of the lender, Mr Tony Okpanachi, said the recognition affirms the company’s efforts in expanding access to financial services for MSMEs in Nigeria.
“We are honoured to receive the Financial Inclusion Leadership Award, which is a testament to our bank’s commitment to expanding access to financial services for all Nigerians. This award recognises our efforts to bridge the financial inclusion gap, particularly for a priority sector like the MSMEs.
“Additionally, this award is a validation of our strategic focus on driving financial inclusion for small businesses, and we are proud to be at the forefront of this initiative that drives that. We will continue to innovate and expand our financial inclusion programmes, ensuring that more Nigerian small and startup businesses have access to services,” he stated.
On his part, the Chief Operating Officer of DBN, Mr Bonaventure Okhaimo, said the accolade demonstrates the firm’s dedication to driving financial inclusion and economic growth in Nigeria.
“This award acknowledges our Bank’s innovative approach to widening opportunities for MSMEs in Nigeria to grow and scale their businesses,” he said.
“This award will motivate us to continue pushing the boundaries of financial inclusion, exploring more innovative solutions and partnerships to expand our reach and impact.
“We are committed to ensuring that more small businesses and startup enterprises in Nigeria have access to financial services, this award will further inspire us to accelerate our efforts in this regard,” he stated.
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