Standard Chartered Bank acted as Sole Arranger and Sustainability Structuring Agent of a US$50 million Reg S Step-Up Puttable Green Notes due 2027 for Access Bank Plc in the international capital market via a private placement.
The offering represents a first of its kind in Africa, and the second Green Bond Issuance by Access Bank, following its debut Naira Green Bond Issuance in 2019.
This innovative puttable Green private placement for Access Bank is a 5-year Senior Unsecured Note (Reg S) issued under Access Bank’s US$1.5 billion Global Medium-Term Note Programme and is listed on the main market of the London Stock Exchange.
The Bond was issued with a coupon of 5.50% in the first two years and then steps up (on the put option date) to 7.25% in the last 3 years to maturity, with interest payable semi-annually in arrears.
This innovative structure enabled Access Bank Plc to achieve an attractive pricing, with a blended average cost of funding below of fair value, amidst the rising and volatile interest rate environment.
The net proceeds from the issuance of the Bond, will be used by Access Bank for the financing or refinancing, in part or in full, new and/or existing projects and/or assets meeting the eligibility criteria set out in the Bank’s Green Financing Framework dated 18 November 2021, on which S&P Global Ratings has provided a second party opinion.
This deal was solely originated, executed and led by Standard Chartered, with our sustainable finance team working with Access Bank to establish a Green bond framework.
Mr. Olukorede Adenowo, Standard Chartered’ s Executive Director, Corporate, Commercial and Institutional Banking, Nigeria & West Africa, noted that “Standard Chartered is proud to once again partner with Access Bank on this momentous transaction. The success of this issuance continues to demonstrate investors’ confidence in Access’s strategy as a leading banking group out of Africa. We work with our clients across Africa to deliver on their growth aspirations and also use our market leading position in the international bond markets and sustainable financing space to drive inclusive growth and development in Africa. “
Standard Chartered Bank has led and served as Joint Lead Manager on almost all Eurobond transactions by banks in Sub Saharan Africa since 2017, underscoring its unparalleled leadership in the space.