Access Bank to Raise N125bn from Debt Market – Ratings Note
Nigeria’s largest commercial lender by total asset, Access Bank Plc, plans to raise N125 billion from the debt capital market after its successful recapitalisation.
The bank, which recently raised more than enough for its N500 billion new capital requirement for lenders with international authorisation, will be in the market to raise additional funds in 2025.
In a note, GCR Ratings has assigned an indicative long-term issue rating of AA (NG) (IR) to Access Bank Plc’s proposed N125 billion series 1 fixed rate senior unsecured bonds, with stable outlook.
“Indicative ratings indicates that a credit rating has been accorded based on review of final draft documentation and expectations regarding final documentation,” GCR said.
The proposed bond issuance is part of N600 billion debt and hybrid instrument programme that the financial institution is in the process of registering with the Securities and Exchange Commission.
Details from the rating note revealed that the proposed bonds raise is expected to be issued as Series 1, with a tenor of two years. The bonds will constitute direct, unconditional, senior, unsecured and unsubordinated indebtedness of the issuer hence, ranking pari passu with all other unsecured obligations assumed by the issuer.
GCR recently assigned national scale long and short-term ratings of AA(NG) and A1+(NG) respectively to the issuer, reflecting Access’ competitive strengths, well-established ability to acquire funding via local and international financiers, and good asset quality.
“The bonds are senior unsecured thus, bearing the same default risk as the issuer and would reflect similar recovery prospects to senior unsecured creditors in the event of default.
“As such, the long-term rating of the bonds is equivalent to the issuer’s long-term rating. That said, any change in the rating of the issuer will directly impact the rating of the bonds”, GCR explained. The issuer, Access Bank Plc is Nigeria’s largest bank by assets with operations in key markets across Africa, Europe and Asia.
The stable outlook reflects Access’ strong business and financial profile, and our expectation that key credit metrics will remain within the assigned rating level. #Access Bank to Raise N125bn from Debt Market – Ratings Note Broadstreet Tempers Stocks Buying as Interest Rate Runs Ahead Inflation
