On Wednesday, March 19th 2018, Access Bank held a press release to announce it was issuing a 5-year Fixed Rate Senior Unsecured N15,000,000,000 Green Bond. This is the third groundbreaking event Access Bank has announced in 6 months; it first announced its merger with Diamond Bank late 2018, a move that saw it become the continent’s biggest retail bank. The second was its announcement that its merger with Diamond Bank wasn’t going to result in mass layoffs, but would instead consolidate the increased workforce towards the implementation of their shared goals. This Green Bond, the first ever Climate Bonds, Standard fully certified corporate Green issued in Africa is proof that Access Bank isn’t content to conquer the continent, it is also determined to be a major player on the global stage.
Climate Change is a huge part of the Access Bank DNA, and the Green Bond allows the Bank promote sustainability in economic enterprise by adding conditions that encourage organizations and individuals who want to access the Bonds incorporate climate care and sustainability into their business practices.
The 5-year Fixed Rate Senior Unsecured Green Bond has already been awarded an Aa- rating by Agusto & Co, the underlying framework verified by PwC (UK) and the Bonds certified by the Climate Bonds Initiative as having met the global Climate Bonds Standard. The offer for the Green Bonds was achieved by way of a Book Build which was fully subscribed. The Bonds priced at a coupon of 15.5%, with participation from a wide range of asset managers and pension fund administrators. This isn’t a surprise move though. The Bank began its preparation towards hosting the bond long before it even completed its merger, launching the Nigerian Green Bond Market Development Programme, on which it partnered with the FMDQ OTC and the Securities & Exchange Commission all the way back in June 2018.
The Bond is part of Access Bank’s commitment to mitigating climate change and providing sustainable alternatives to banking that factor in the globe’s contemporary problems. The Bond is the Bank’s contribution to green lending, and is geared towards encouraging individuals and organizations to lend responsibly. It will also help many organizations whose agendas prioritize long term sustainability over immediate profit margins expand their ideas through bond financing.
Speaking on this landmark Issue, the Bank’s Group Managing Director, Mr. Herbert Wigwe said:
“With our pace-setting experience in the mainstreaming of sustainability in our business operations, we are confident that this issue with further help in supporting environmentally friendly investors to meet their investment objectives whilst simultaneously supporting the Bank’s customer towards realizing growth opportunities in fast-developing low carbon economy”
The new funding will be directed towards financing new loans and refinancing existing loans in accordance with the Bank’s Green Bond Framework, and support projects directed at Flood Defense, Solar Generation facilities and Agriculture.
The Bank has a strong track record in deploying environmental and social risk management tools, partnering with local and international agencies to deliver a greener outcome from investing activities. Over the last five years, the Bank has pioneered various resource conservation programmes in water usage, energy consumption and waste recycling, aimed at reducing carbon emissions. It is worthy to note that all the Bank’s sustainability efforts are well aligned with the Federal Government’s Nationally Determined Contributions (NDCs), the UN Sustainable Development Goals (SDGs), the Economic Recovery and Growth Plan (ERGP) and Vision 2020:20.
The quality of the Bank’s contributions to sustainable financial practices is also evident in the increasing local and international awards and accolades received, which include – Karlsruhe Sustainable Finance Award for Outstanding Business Sustainability & Outstanding Sustainability Leader (2018); Euromoney Award for Africa’s Best Bank for Corporate Social Responsibility (2018); Global Finance Awards for Most Sustainable Bank in Nigeria (2018) and Central Bank of Nigeria Sustainability Award(s) for Sustainable Bank of the Year (2017).
Chapel Hill Denham was the Lead Issuing House on the Green Bond Issuance, whilst the Joint Issuing House was Coronation Merchant Bank.
