Access Bank Plc will be listing its trail-blazing N15 billion green bond on the Luxembourg Stock Exchange (LuxSE), making it the first company to take advantage of the cooperation agreement between Nigeria and Luxembourg on green bond.
In a regulatory filing yesterday, Access Bank stated that it has applied to the LuxSE for the listing of the N15 billion green bond on the official list of LuxSE. However, the bond will not be traded on the LuxSE. The N15 billion green bond, the first of its kind to be issued by an African corporate, had earlier been listed on the Nigerian Stock Exchange (NSE) and FMDQ Securities Exchange
The five-year fixed rate senior unsecured N15 billion green bond was issued in 2019 and carried a coupon of 15.50 per cent. It will mature in 2024. The bond was awarded an Aa- rating by Agusto & Co while the underlying framework verified by PwC (UK).
Group Managing Director, Access Bank Plc, Mr. Herbert Wigwe, said the green bond issuance highlighted the bank’s commitment to sustainability and its status as a pioneer in green financing in both the domestic and international capital markets.
He noted that the bond comes amidst a global drive for responsible and sustainable green financing and will allow the financing of new loans and refinancing of existing loans in accordance with the bank’s green bond framework.
He said the green bond will support projects directed at flood defense, solar generation facilities and agriculture.
“At Access Bank we are a pioneer in both domestic and international capital markets, leading the way with our commitment to sustainable banking. We hope that this bond issuance inspires other African companies to support the long-term development of the green finance market whilst simultaneously realizing the growth potential of the fast-developing low carbon economy,” Wigwe said.
The MoU also establishes an agreement for the two exchanges to collaborate with a view to sharing best practices and organising joint initiatives in their respective markets.
With more than 35,000 listed securities, including more than 29,000 bonds, from 3,000 issuers in 100 countries, LuxSE is one of the world’s leading exchanges for the listing of international financial securities.
In 2016, LuxSE launched the Luxembourg Green Exchange (LGX) and became the first exchange in the world to operate a platform dedicated entirely to sustainable financial securities. LGX has become a meeting place for impact-conscious issuers and investors, and now has a 50 per cent market share of listed green, social and sustainability bonds worldwide. LuxSE also operates a specialist subsidiary, Fundsquare, which provides services to support and standardise cross-border distribution of investment funds.
