Managing Director Roosevelt Ogbonna revealed that the bank intends to issue two separate tranches of these securities, although he did not disclose the total amount to be raised.
One tranche will focus on the development of financial institutions, while the other will be made available on the open market, Ogbonna mentioned during a press briefing in Lagos, Nigeria's commercial center, on Monday.
He noted that the bank is in the process of finalizing the structure of these instruments, with the tranche designated for financial institutions (DFIs) expected to be completed by the first half of next year. Ogbonna indicated that the bank will reference the government's recent domestic sale of dollar-denominated bonds for this initiative.
The federal government successfully launched its first domestic dollar-denominated bond, garnering over $900 million in subscriptions. The $500 million bond, managed by the Africa Finance Corporation (AFC), was issued at par with an annual coupon rate of 9.75% and achieved a subscription rate of 180%.
The Ministry of Finance praised this bond issuance as a significant milestone for Nigeria, emphasizing its role in positioning the country as a leader in financial innovation within Africa.
Earlier, the group completed a N351 billion Rights Issue in August, although specific details regarding the program have not been made public.
Mr. Ogbonna announced that Access Bank Plc intends to enter the United States market by the first quarter of 2025, with a possible extension to 2026. Furthermore, the bank's UK subsidiary is set to open an office in Hong Kong. Access Bank is recognized for its proactive expansion approach, particularly through mergers and acquisitions.
Earlier this year, the bank announced its intention to acquire the National Bank of Kenya. A binding agreement has been reached with KCB Group Plc, headquartered in Kenya, to purchase the entirety of the issued share capital of National Bank of Kenya Limited. KCB is the parent company of KCB Bank Ltd, Kenya's largest commercial bank.
Access Bank recently announced its acquisition of a provisional license to establish a banking subsidiary in Namibia. This strategic move, led by Roosevelt Ogbonna, Managing Director and CEO of Access Bank Plc, aims to enhance intra-African trade and solidify the bank's presence in Southern Africa.