Access Bank to raise $41.4 million green bond

Access Bank Plc receives SEC's approval to raise $41.4 million (N15 billion) green bond
Herbert Wigwe, Access Bank Plc GMD, describes it as a step in the right direction, saying it lends credence to the process and gives hope of a favourable outcome.
Green bonds or climate bonds are designated bonds intended to encourage sustainability and to support climate-related or other types of special environmental projects.

Access Bank Plc is planning to issue the first ever corporate Green Bond in Africa worth $41.4 million (N15 billion).

This followed the approval of its Book Build request by the Securities and Exchange Commission (SEC).

The book building which commenced on Thursday, February 21, 2019, will be concluded next Thursday, after which the funding of commitment will begin on Friday, March 1, 2019, according to a corporate filling seen by Business Insider Sub Saharan Africa by Pulse.

Details of the green bond, according to the filings:

A 5-year Fixed Rate Senior Unsecured Green Bond of up to N15 billion
14.90% to 15.10% per annum
Moody's rate it at B2 and PwC (UK) verified it.

The issuance is coming 8 months after the management of Access Bank launched the Nigerian Green Bond Market Development Programme in partnership with FMDQ OTC Securities Exchange and the SEC.

Herbert Wigwe, Access Bank Plc GMD described it as a step in the right direction, saying it lends credence to the process and gives hope of a favourable outcome.

Herbert Wigwe, GMD Access Bank Plc ece-auto-gen

He said the final approval of the Green Bond will mean another feat that is commendable and speaks to the vision of being a key player in the country’s finance sector.

What is Green Bond

Green bonds or climate bonds are designated bonds intended to encourage sustainability and to support climate-related or other types of special environmental projects.

According to Ernst & Young, It offers a fixed return, and a promise to use the proceeds to finance or refinance, in part or fully, new or existing sustainable projects. The bond is voluntary and may be issued by a financial institution, the government or even a company to raise funds for a defined period. The issuer has to ensure that the proceeds are invested in green projects, such as renewable energy, energy efficiency, projects leading to reduced carbon emissions, etc.