Access Bank To Give First Corporate Green Bond In Africa

Access Bank Plc says it is set to issue the first corporate green bond in Africa.

The bank said the Securities and Exchange Commission had given it approval for its book build.

In a statement on Thursday, it said the book build which commenced on Thursday would be concluded in exactly one week, after which the funding of commitment would begin on Friday, March 1, 2019.

The bank said, “The bond, a five-year fixed rate senior unsecured green bond of up to N15bn is the first ever climate bonds standard certified corporate green bond to be issued in Africa. It has been awarded a B2 rating by Moody’s and verified by PwC (UK).”

It added that this followed the certification by the Climate Bond Initiative as having met the Climate Bond Standards.

The statement added that the management of Access Bank had in anticipation of the approval, launched the Nigerian Green Bond Market Development Programme in June 2018, in partnership with FMDQ OTC Securities Exchange and the SEC.

While reacting to the approval, the Group Managing Director, Herbert Wigwe, described it as a step in the right direction adding that it lent credence to the process and gave hope of a favourable outcome.

According to Wigwe, the final approval of the green bond would mean another feat that was commendable and spoke to the vision of being a key player in the country’s finance sector.

He stated, “With over a decade’s experience leading sustainability in the Nigerian financial sector, we believe that the issuance of this bond will create a path to financing Nigeria’s climate change objectives and also unlock the country’s economic growth potential.”

While citing the bank’s rich experience in the area of sustainability as a factor that would guarantee its success, he 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 the fast-developing low carbon economy.”

It added that the issue proceeds would be used to finance eligible green projects that met the Climate Bonds Initiative standards.

The issue would serve as a turning point for Nigeria, attracting both domestic and international investors and would set the pace for other Nigerian corporates to raise green capital, the bank said.