Access Bank Lists M15bn Green Bond on FMDQ OTC, NSE

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Goddy Egene

Access Bank Plc yesterday listed its N15 billion Green Bond on the FMDQ OTC Securities Exchange and the Nigerian Stock Exchange (NSE). The Bond is the first of its kind to be issued by an African corporate and represents a major milestone in the development of the local green finance market. It is a 5-year 15.5 per cent Fixed Rate Senior Unsecured Green Bond due 2024.

Speaking on the occasion of this landmark listing, the Group Managing Director/CEO of Access Bank Plc, Herbert Wigwe, said: “At Access Bank we are a pioneer in both domestic and international capital markets, leading the way with our commitment to sustainable banking. We hope that this bond issuance inspires other African companies to support the long-term development of the green finance market whilst simultaneously realising the growth potential of the fast-developing low carbon economy.”

Speaking on the listing, Associate Executive Director, Capital Markets, FMDQ, Ms. Tumi Sekoni, congratulated the issuer for the successful issue of the pioneer Climate Bond Certified Green Bond in the Nigerian DCM.

According to her, the green bond would help address climate and environmental challenges in a sustainable manner to deliver prosperity for Nigerians and further deepen the domestic DCM by increasing the range of investible debt securities in the markets, invariably contributing to Nigeria’s development. She reiterated FMDQ’s commitment to continue to create awareness and drive education for green financing, thereby facilitating the development of the green bond market in Nigeria.

Also speaking, Managing Director, Chapel Hill Denham Advisory Limited, sponsor of the issue the registration member (Listings) of FMDQ, Mrs. Kemi Awodein, said “Chapel Hill Denham is proud to have acted as lead arranger and financial adviser to Access Bank on Nigeria’s and Africa’s first climate bond.

“This is another first-of-a-kind deal for both Access Bank and Chapel Hill Denham, and this demonstrates our leadership in debt capital market innovation and our commitment to doing work that delivers positive impact for Nigeria’s future. A commitment to advancing sustainable development goals is imperative in Nigerian and debt markets provide us many solutions,” he said.

On its part, the NSE said will continue to provide a unique platform to support both the federal government and businesses to access capital for sustainable initiatives.

“The NSE, in collaboration with Federal Ministry Environment, Federal Ministry of Finance and Debt Management Office hosted a high profile conference themed: “Green Bonds: Investing in Nigeria’s Sustainable Development” in 2016 that provided an opportunity for the government to engage the capital market stakeholders. The conference was a major step towards the issuance of Nigeria’s first sovereign green bond currently listed on the Exchange,” the exchange said.