Access Bank Plc has redeemed a $500 million senior unsecured Eurobond that matured on Monday, September 21, 2026, marking the full repayment of the five-year debt from the bank’s own foreign currency liquidity.
Access Holdings Plc, the parent company of the bank, disclosed this in a statement signed by its Company Secretary, Sunday Ekwochi, on Monday.
The Eurobond was issued in September 2021 with a five-year maturity period and an annual coupon rate of 6.125 per cent.
Pinnacle Daily reports that a coupon is the interest paid to bond investors, while a Eurobond is a debt instrument issued in a currency different from the currency of the country where the issuer operates.
Access Bank said it had met all its semi-annual interest payment obligations since the bond was issued.
The bank said the $500 million principal repayment was funded entirely from its own foreign currency liquidity resources, rather than through a new borrowing arrangement.
According to the bank, the repayment had been incorporated into its liquidity management plans and would not adversely affect its operations or regulatory liquidity requirements.
The development is significant for the bank because the maturity required it to make a large foreign currency payment at a time when access to foreign exchange remains an important consideration for Nigerian banks with international funding obligations.
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Access Bank said the repayment reflected its asset-liability management framework, which involves matching the timing and currency of a bank’s assets and funding obligations to reduce liquidity and foreign exchange risks.
Commenting on the repayment, Access Bank Managing Director and Chief Executive Officer, Roosevelt Ogbonna, said the maturity demonstrated the bank’s ability to meet its funding obligations from its balance sheet.
“This redemption reflects the strength of Access Bank’s franchise, the discipline of our balance sheet management, and our continued commitment to meeting obligations to investors and stakeholders in a timely and transparent manner,” Ogbonna said.
“Meeting this maturity from our own balance sheet affirms the strength of our funding position and the discipline with which we manage our capital and liquidity.”
Access Holdings said the redemption discharged the bank’s obligations under the Eurobond and reaffirmed its commitment to maintaining a strong and diversified funding base to support growth across its markets.
Alex is a business journalist cum data enthusiast with the Pinnacle Daily. He can be reached via ealex@thepinnacleng.com, @ehime_alex on X