By Modupe Gbadeyanka
Top Nigerian financial institution, Access Bank Plc, has announced its intention to list its N15 billion 15.50 percent fixed rate unsecured climate-credential green bond with five-year maturity on the Luxembourg Stock Exchange (LuxSE).
In January 2019, there were reports that the tier-one lender was planning to sell the climate-friendly bonds worth N150 billion by 2021, with the first tranche of N15 billion to be issued in the first quarter of 2019.
But while reacting to the matter in a notice to the Nigerian Stock Exchange (NSE), the financial institution confirmed then that it was considering to issue the N15 billion green bonds, but remained silent on the reported N150 billion.
Two months later, in March 2019, the bank sold the N15 billion worth of the green bonds to investors at 15.50 percent for a 5-year tenor.
The green bonds were awarded an Aa- rating by Agusto & Co and certified by the Climate Bonds Initiative, having met the global climate bonds standard.
The N15 billion senior unsecured green bonds were subsequently listed on the trading floors of the Nigerian Stock Exchange (NSE) and the FMDQ OTC Securities by Access Bank.
“Dealing members are hereby notified that Access Bank Plc’s N15,000,000,000, 5-Year 15.5% Fixed Rate Senior Unsecured Green Bonds due 2024, issued by way of Book Building to qualified institutional investors and high net worth individuals, were today, Tuesday, April 2, 2019 listed on the exchange,” the notice from the NSE last April had said.
Today, Monday, February 10, 2020, Access Bank released a statement to the stock exchange, informing the investing community that it was has applied to list the same green bonds on the LuxSE, but stressed that the paper will not be traded on that European nation’s stock exchange.
“Access Bank Plc wishes to notify the Nigerian Stock Exchange and the investing public that the bank has applied to the Luxembourg Stock Exchange (LuxSE) for the admission of the above memtioned instrument on the official list of LuxSE.
“Please note that the bonds will not be traded on LuxSE,” the short notice issued by the financial institution stated.
Business Post recalls that in June 2018, Access Bank launched the Nigerian Green Bond Market Development Programme in partnership with FMDQ and the Securities and Exchange Commission (SEC).
In October 2019, during the annual meeting of the World Federation of Exchanges in Singapore, the NSE and LuxSE signed a Memorandum of Understanding (MoU) to promote the cross listing and trading of green bonds in Nigeria and Luxembourg.
The Luxembourg Stock Exchange operates the Luxembourg Green Exchange (LGX), a platform exclusively dedicated to sustainable finance instruments.
LGX now holds a 50 percent global market share of listed green, social and sustainability bonds. LuxSE works closely with selected stock exchanges around the world to support the growth of sustainable finance.
