Access Bank low-risk bond oversubscribed, says Wigwe

The Group Managing Director of Access Bank Plc, Herbert Wigwe, said on Monday that the Tier II N30 billion subordinated unsecured bond  issued by the bank to strengthen its funding base was oversubscribed.

He said the bond which will mature in seven and callable after five years, was to support the bank’s low-risk appetite.

Wigwe said: “We are a bank with a rigorous and disciplined capital plan and the action taken today is in line with our five -year strategic plan.

“This is to ensure a strong capital buffer at all times and support our low-risk appetite. Following the merger, we identified some synergies and combined with this issue, we are confident of our capacity to attain the next level of being a more efficient bank.”

The issuing houses are Chapel Hill Denham Advisory Limited, Lead Issuing House, Coronation Merchant Bank Limited and First-Ally Capital Limited.

Meanwhile the bank’s result for the first quarter ended March 2019 with gross earnings rising from N137 billion in 2018 to N160 billion in 2019. This amounts to a 16% increase year- on- year. Profit Before Tax increased from N27.2 billion in 2018 to N45.1 billion in 2019. This amounts to a 66% increase year- on- year.

Profit After Tax jumped from N21.9 billion in 2018 to N41.1 billion in 2019. This amounts to an 88% increase year- on- year. Earnings per share also rose from N0.77 in 2018 to N1.39 in 2019. This amounts to an 81% increase year- on- year.

A bond could be thought of as an I.O.U. between the lender and borrower that includes the details of the loan and its payments. A bond has an end date when the principal of the loan is due to be paid to the bond owner and usually includes the terms for variable or fixed interest payments that will be made by the borrower.

Bonds are used by companies, municipalities, states, and sovereign governments to finance projects and operations. Owners of bonds are debt-holders or creditors of the issuer.