Access Bank secures ‘no objection’ to N30bn Tier II Bond

Access Bank Plc has secured a ‘no objection’ from the Central Bank of Nigeria (CBN) and the Nigerian Stock Exchange (NSE) to a N30 billion tier-II bond issuance it concluded recently.

This was disclosed in a statement issued by thebank’s Secretary, Sunday Ekwochi.

The lender had finalised the process for the issuance of the bond, that would be due in 2026.

According to the statement, Acess Bank is also looking forward to listing the bond on the NSE imminently.

Prior to this development, Access Bank’s Group Managing Director, Herbert Wigwe, was quoted as saying that the Tier II N30 billion subordinated unsecured bond issued by the bank to strengthen its funding base was oversubscribed.

According to Wigwe, the bond was to support the bank’s low-risk appetite.

What you should know: The bond will mature in seven years and is callable after five years. The issuing houses are Chapel Hill Denham Advisory Limited, Lead Issuing House, Coronation Merchant Bank Limited and First-Ally Capital Limited.

Company results: The bank has released its results for the first-quarter ending in March 2019. Below are highlights of the results.

  • Gross earnings rose from N137 billion in 2018 to N160 billion in 2019. This amounted to a 16% increase year-on-year.
  • Profit Before Tax increased from N27.2 billion in 2018 to N45.1 billion in 2019,  a 66% increase year- on- year.
  • Profit After Tax jumped from N21.9 billion in 2018 to N41.1 billion in 2019. This implied a  88% increase year- on- year.
  • Earnings per share also rose from N0.77 in 2018 to N1.39 in 2019. This amounted to 81% increase year-on-year.

Understanding bonds: A bond is a fixed income instrument representing a loan made by an investor to a borrower (typically corporate or governmental).

Bonds are used by companies, municipalities, states, and sovereign governments to finance projects and operations. Owners of bonds are debt-holders or creditors of the issuer.

 

Leave a Reply

Your email address will not be published. Required fields are marked *