Nigeria's Access Bank plans an early redemption of the $400 million Eurobond issued in 2014 ahead of the June 2021 maturity date, the lender said in a regulatory filing on Thursday.
The bank had raised the $400 million 7-year debt note at 9.25 percent interest in 2014 to strengthen its operations.
According to the filing posted on the Nigerian Stock Exchange (NSE) website on Thursday, the bank expressed its intention to pay off investors with accrued interest on June 24, this year, a clear two-year ahead of the maturity date of the debt note.
“The $400 million subordinated bonds, issued in June 2014 by Access Bank Plc, will be redeemed on June 24, 2019, with accrued interest.
“Following such redemption, the bonds will be canceled and there will be no bonds outstanding.
“The issuer intends to complete any formalities relating to the delisting of the bonds from the regulated market of the Irish Stock Exchange as soon as possible.”
The bank had raised the fund in 2014 as part of its larger $1 billion global medium-term note programme.
The lender said then that the proceeds of the debt would be used to enhance its working capital, lending to investment-grade names, especially Nigerian companies seeking to expand their exports”.
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