Access Bank’s proposed N15bn green bond excites fixed income market



The news of Access Bank’s proposed listing of its N15 billion green bond on the Luxembourg Stock Exchange (LuxSE) has created some excitement in the fixed income market.

This 15.50 per cent fixed rate green bond with five-year maturity is the first-ever climate bonds standard certified corporate green bond to be issued in Africa, and was first listed on the Nigerian Stock Exchange (NSE) in 2019.

If its application to the LuxSE is successful, it will be the first cross listing of a green bond born out of the partnership between the NSE and LuxSE.

During the annual meeting of the World Federation of Exchanges in Singapore in October 2019, the NSE and LuxSE signed a Memorandum of Understanding (MoU) to promote the cross listing and trading of bonds.

This collaboration was designed to improve the growth of sustainable finance in Nigeria, a journey which began with the launch of the first Sovereign Green Bond by NSE, in partnership with the Federal Ministry of Environment, Federal Ministry of Finance and the Debt Management Office.

At the time of signing, Chief Executive Officer of NSE, Mr. Oscar N. Onyema expressed that the partnership would deliver increased visibility for issuers, as well as deepen the Nigerian capital market through the mobilization of the foreign green capital needed to fund sustainable projects in Nigeria.

The successful listing of Access Bank’s N15billion green bond on the LuxSE, the capital market will, therefore, be a strong signal for expansion in the capital market owing to the NSE-LuxSE partnership.

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