Access Bank redeems $500m Eurobond at maturity

Access Bank Plc, the flagship banking subsidiary of Access Holdings Plc, has redeemed its $500m senior unsecured Eurobond that matured on 21 September 2026.

The bank said the repayment was funded entirely from its own foreign-currency liquidity, in line with its asset-liability management framework and the maturity profile established when the bond was issued.

The Eurobond was issued in September 2021 with a five-year tenor and a 6.125 per cent coupon rate.

Access Bank said it made all semi-annual coupon payments on the bond as they fell due throughout the five-year period.

The redemption discharges the bank’s obligations under the Eurobond and marks the maturity of one of its major international debt instruments.

According to the bank, the repayment was incorporated into its liquidity management framework and will have no adverse impact on its operations or regulatory liquidity requirements.

Managing Director and Chief Executive Officer of Access Bank, Roosevelt Ogbonna, said the redemption demonstrated the bank’s funding and liquidity management capacity.

“Meeting this maturity from our own balance sheet affirms the strength of our funding position and the discipline with which we manage our capital and liquidity,” Ogbonna said.

The repayment also comes as Nigerian banks continue to manage foreign-currency funding obligations amid tighter requirements around liquidity, capital and balance-sheet management.

Access Bank said it would continue to maintain a diversified funding base to support growth across its markets.

The bank’s parent company, Access Holdings, said the transaction underscores the group’s approach to balance-sheet management and meeting its obligations to investors.

The $500 million bond was a senior unsecured obligation, meaning it was not backed by specific collateral and ranked as a senior claim against the issuing bank.

With the maturity now settled, Access Bank has removed the $500 million principal obligation from its outstanding Eurobond liabilities, experts said.