Tuesday, 9 April 2013

Access Bank’s Eurobond Gets ‘B+’ Rating From S&P

access-bank logoVENTURES AFRICA – At the weekend, Access Bank’s proposed senior unsecured notes received a ‘B+’ rating from Standard and Poor’s Ratings Services (S&P), this was disclosed in an exclusive report published by THISDAY.

In a statement issued by the global agency, it announced the long-term issue rating and said the notes to be issued are unconditionally and irrevocably guaranteed by Access Bank Plc.

“Access Finance B.V is a special purpose entity created solely for debt issuance to fund Access Bank. The senior unsecured notes are unconditionally and irrevocably guaranteed by Access Bank.

Consequently, the rating on the notes, all of which are senior unsecured, reflects the counterparty credit ratings on Access Bank,” S&P said.

The Nigeria’s commercial bank was planning to issue a Eurobond on the London Stock Exchange (LSE) to enable it raise funds for its operations prior to which it had directed Citigroup and Goldman Sachs International to organize global fixed income investor meetings in Europe and the US.

Access Bank will float a US dollar-denominated 144A/Reg S bond offering, at the end of global fixed income investor meetings that had started on Wednesday.

The bank’s share price on the Nigerian Stock Exchange (NSE) closed on Friday within increase of 3 percent over the preceding Friday. Its ratings had been upgraded by international agencies, since its acquisition of former Intercontinental Bank, also.

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