Access Holdings Plc Makes Bold Moves

By Tosin Olatokunbo

Access Holding Plc has taken major steps in line with its new status as a multi-financial service provider after securing a $50 million private placement from the London Stock Exchange, LSE. The development also came on the back of the recent promotion of 800 staff from the senior, middle, and junior management levels in the bank.

The Group Managing Director of the financial behemoth Herbert Wigwe, disclosed last month, the commercial bank’s readiness to “evolve from a bank into a large-scale ecosystem player offering a new globally connected set of services.”

He added that, “This ecosystem will offer specialized services at the same time as a seamless integrated experience to improve both relevance and convenience. Access Corporation will oversee a group of portfolio companies with significant complementarities that will drive more value for you.

“These include: Access Bank Group: banking remains at our core, now equipped to provide best-in-class, seamless and consistent Customer Experience, and service delivery in its operations in Nigeria, and across its 14 subsidiaries in Africa, Europe and Asia.”

Now, the Corporation seems to have started on the right footing by boldly stepping into the international market to raise capital to further consolidate its position in the nation’s financial sector as a positive risk taker, keen analysts in the sector said.

In a statement to the Nigerian Exchange Limited, NGX the bank said the fund was raised under Access Bank’s $1.5 billion Global Medium-Term Note Programme, MNTP; the dollar offering in the second Green Bond issued by the financial institution due for settlement in 2027.

According to the statement, the bank disclosed that it has successfully “priced a US$50 million Reg S Step-Up Green Notes due 2027 in the international capital market via a private placement.

“The Step-Up Puttable Green Bond is a 5-year Senior Unsecured Note (Reg S) under Access Bank’s US$1.5 billion Global Medium-Term Note Programme and is listed on the main market of the London Stock Exchange.

“The Green Bond matures in May 2027 with an investor put option, commencing May 2024. The Green Bond was issued with a coupon of 5.50 per cent in the first two years and then steps up (on the put option date) to 7.25 per cent in the last 3 years to maturity, with interest payable semi-annually in arrears.”

The lender, last week, announced in a statement signed by its Group Head, Communication and External Affairs that the elevation of the 800 staff to higher levels is in recognition of their efforts which saw the bank remained on a consistent growth level.

“This is a positive move at a time other competitors are retrenching their staff due to unfavorable economic situations in the country. What this means, is that, the bank has boosted the psychology of these employees, to prepare them ahead for the immediate task of transforming Access Corporation into a global financial top player,” a financial expert told the magazine on Friday.