By Chioma Obinagwam
Africa’s leading financial institution, Access Bank Plc has said it is set to issue the first corporate green bond in Africa.
The bank disclosed in a statement issued on Thursday.
This is coming on the heels of the approval of the bank’s book build by Nigeria’s Securities and Exchange Commission (SEC).
“Book build will commence on Thursday, February 21, 2019 and will be concluded in exactly one week, after which the funding of commitment will begin on Friday,March 1, 2019.The Bond, a 5-year Fixed Rate Senior Unsecured Green Bond of up to N15 Billion is the first ever Climate Bonds Standard Certified Corporate Green Bond to be issued in Africa,” the bank revealed in the statement.
“It has been awarded a B2 rating by Moody’s and verified by PwC (UK) following certification by the Climate Bond Initiative as having met the Climate Bond Standards,” the statement continued.
The statement further indicated that the Management of Access Bank had in anticipation of the approval, launched the Nigerian Green Bond Market Development Programme in June 2018, in partnership with FMDQ OTC Securities Exchange and the SEC.
While reacting to the approval, the Group Managing Director (GMD) of the bank, Herbert Wigwe described it as a step in the right direction adding that it lends credence to the process and gives hope of a favourable outcome.
According to Wigwe, the final approval of the Green Bond will mean another feat that is commendable and speaks to the vision of being a key player in the country’s finance sector.
In his words, “Withover a decade’s experience leading Sustainability in the Nigerian financial sector, we believe that the issuance of this bond will create a path to financing Nigeria’s climate change objectives and also unlock the country’s economic growth potential.”
Citing the Bank’s rich experience in the area of sustainability as a factor that will guarantee its success, he said, ‘’With our pace-setting experience in themainstreaming of sustainability in our business operations, we are confident that this Issue will further help in supporting environmentally friendly investors to meet their investment objectives whilst simultaneously supporting the Bank’s customer towardsrealizing growth opportunities in the fast-developing low carbon economy.”
The bank further disclosed that the issue proceeds will be used to finance eligible green projects that meet the Climate Bonds Initiative (CBI) standards. The Issue will serve as a turning point for Nigeria, attracting both domestic and international investors and will set the pacefor other Nigerian corporates to raise green capital.
Access Bank, one of Nigeria’s tier 1 banks, had issued US$300 million Eurobond in 2016, maturing in October 2021 and is on the verge of getting final approval from shareholders of its bank and Diamond bank as a way of finalising its acquisition of Diamond bank.
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