Access Bank issues N15bn green bond

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Access Bank Plc on Monday issued a five-year fixed rate senior unsecured green bond worth N15bn.

The green bond, which has been awarded an Aa- rating by Agusto & Co and certified by the Climate Bonds Initiative having met the global climate bonds standard, saw its offer by way of a book build fully subscribed.

The bonds, which are priced at a coupon of 15.5 per cent, had participation from a wide range of asset managers and pension fund administrators.

The management of the bank launched the Nigerian Green Bond Market Development Programme in June 2018 in partnership with FMDQ OTC Securities Exchange and the Securities and Exchange Commission in anticipation of the issuance.

The Group Managing Director/Chief Executive Officer, Mr Herbert Wigwe, while speaking at the signing ceremony in Lagos on Monday, said, “With our pace-setting experience in the mainstreaming 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 while simultaneously supporting the bank’s customers towards realising growth opportunities in developing low carbon economy fast.”

Wigwe added that the new funding would be directed towards financing new loans and refinancing existing loans in accordance with the bank’s green bond framework and supporting projects directed at flood defence, solar generation facilities and agriculture.

According to him, the bank supports the global climate change mitigation and adaptation agenda and seeks to promote responsible green lending globally.

He noted that the green bond issuance was a demonstration of the bank’s commitment to sustainable operational practices and being a pioneer operator, both in domestic and international capital markets.

He added, “The bank has a strong track record in deploying environmental and social risk management tools and partnering local and international agencies to deliver a greener outcome from investing activities.

“Over the last five years, the bank has pioneered various resource conservation programmes in water usage, energy consumption and waste recycling, aimed at reducing carbon emissions. It is worthy to note that all the bank’s sustainability efforts are well aligned with the Federal Government’s Nationally Determined Contributions, the United Nations Sustainable Development Goals, the Economic Recovery and Growth Plan and the Vision 2020:20.”

Chapel Hill Denham acted as the lead issuing house on the Green Bond issuance, while the joint issuing house was Coronation Merchant Bank.


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