Access Bank to list N15bn green bond on Luxembourg Stock Exchange

by on February 11, 2020

Access Bank PLC, is set to attain a new milestone as it announced on Monday it would float a N15 billion green bond on the Luxembourg Stock Exchange (LuxSE) any moment from now.

The feat will make the bank the first Nigerian company to do so following a partnership agreement between Nigeria and Luxembourg on green bond.

Green bonds refer to any bond instrument whose proceeds are used to finance or refinance climate and environmental projects.

According to the lender’s notice to the Nigerian Stock Exchange (NSE) and, by extension, the investing public on Monday, signed by Sunday Ekwochi, its Company Secretary, the bond has a coupon of 15.50% fixed rate and “will not be traded on LuxSE.”

The five year senior unsecured bond has earlier been listed on the NSE and FMDQ Securities Exchange, having been issued in 2019.

Hebert Wigwe, Access Bank’s chief, remarked that the bond would support projects aimed at flood defense, agriculture and solar generation facilities.

“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,” he said.

Last year saw the NSE and the LuxSE sign a Memorandum of Understanding (MOU) geared towards boosting cross listing and trading of green bonds in both countries.

The LuxSE is one of the world’s leading exchanges for the listing of international securities and currently boasts of over 35,000 listed securities, comprising bonds in excess of 29,000 issued in 100 countries.

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