Access Bank Plc has redeemed its $500 million Senior Unsecured Eurobond, which matured on September 21, 2026, marking the full repayment of the five-year debt instrument.
The bank disclosed the development in a statement, saying the repayment was funded entirely from its own foreign-currency liquidity resources.
The Eurobond was originally issued in September 2021 with a five-year tenor and a 6.125 per cent annual coupon rate, payable semi-annually. The bank said it made all scheduled coupon payments throughout the life of the instrument before repaying the principal in full at maturity.
The $500 million instrument was issued under Access Bank’s $1.5 billion Global Medium-Term Note Programme and was listed on the main market of the London Stock Exchange.
At the time of issuance in 2021, the Eurobond attracted strong investor interest, with the order book exceeding $1.6 billion, more than three times the amount the bank sought to raise. The proceeds were intended to provide medium-term funding and support the bank’s general banking activities.
Access Bank said the repayment had been incorporated into its liquidity management and asset-liability management framework. According to the bank, settling the debt from its existing foreign-currency resources would not have an adverse impact on its operations or regulatory liquidity requirements.
The development means Access Bank has now fully discharged its obligations under the Eurobond.
The bank’s Managing Director and Chief Executive Officer, Roosevelt Ogbonna, said the repayment demonstrated the institution’s approach to managing its funding obligations and maintaining adequate liquidity.
He said meeting the maturity entirely from the bank’s existing resources reflected its funding position and asset-liability management.
Access Bank also stated that the redemption was part of its broader strategy of maintaining a diversified funding base, proactively managing liabilities and preserving financial flexibility for future growth.
The successful repayment comes at a time when Nigerian banks continue to manage foreign-currency liabilities and liquidity amid changing conditions in the domestic and international financial markets.
For banks that raise funds in foreign currencies, the ability to meet maturities on schedule is important because it affects liquidity management, investor confidence and future access to international capital markets.
Access Bank’s Eurobond was a five-year obligation, meaning the bank had to plan for the repayment of the $500 million principal from the time the debt was issued.
The bank’s announcement indicates that the maturity had been incorporated into its financial planning rather than being treated as an unexpected funding requirement.
The redemption also means Access Bank does not have the $500 million principal from this particular Eurobond remaining as an outstanding obligation after its September 21 maturity date.
The bank said the transaction was completed without adverse effects on its operations or regulatory liquidity position.
The development is also significant for investors because the bank maintained its coupon payment obligations throughout the five-year period and ultimately repaid the principal when it became due.
According to Premium Times, Access Holdings said the repayment underscored the bank’s liquidity position, balance-sheet management and commitment to meeting its obligations to investors and other stakeholders.
Access Bank will now continue to manage its funding structure and foreign-currency liquidity as it pursues its wider banking operations and expansion across its markets.
The redemption closes the five-year Eurobond transaction that began in 2021 and removes the $500 million principal from the bank’s outstanding obligations under that particular instrument.
