Access Bank has said it is planning to list a N30 billion Tier-2 bond on the floor of the Nigerian Stock Exchange (NSE).
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.
The bank in a statement sent to the NSE’s website, noted that it had concluded the process of the issuance of its N30 billion tier-2 bond following the approvals of the Securities and Exchange Commission (SEC) and the Central Bank of Nigeria (CBN).
It said the bond had a tenor of 7 years as it would be due in 2026.
“The bank has obtained the CBN’s no objection mandate to the bond issuance in addition to the SEC approval. Access Bank will undertake a listing of the bond on the NSE imminently as the market will be provided with further information in due course.”
Prior to this development, Access Bank’s Group Managing Director, Herbert Wigwe, was quoted as saying that the Tier-2 N30 billion subordinated unsecured bond issued by the bank to strengthen its funding base was oversubscribed and was to support the bank’s low-risk appetite.