As Access Bank N15bn Green Bond becomes 1st cross listing ensuing from NSE-LuxSE partnership

By Osigbemhe Apeaye

Access Bank’s proposed listing of its N15 billion Green Bond on the Luxembourg Stock Exchange (LuxSE) is believed to has created some excitement in the fixed income market.

At a 15.50 per cent fixed rate with five-year maturity, it will be the first-ever climate bonds standard certified corporate green bond to be issued in Africa.

It will also be first listed on The Nigerian Stock Exchange (NSE) in 2019, and 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 NSE and LuxSE.

During the annual meeting of the World Federation of Exchanges in Singapore in October 2019, NSE and LuxSE had 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, Mr Oscar Onyema, the chief executive officer at NSE, expressed that the partnership would deliver increased visibility for issuers, as well as deepen the Nigerian capital market through the mobilisation of the foreign green capital needed to fund sustainable projects in Nigeria.

The successful listing of Access Bank’s N15 billion Green Bond on the LuxSE, therefore, will be a strong signal for expansion in the capital market owing to the NSE-LuxSE partnership.

This listing will also support environmentally friendly investors to meet their investment objectives, while simultaneously supporting the bank’s customer towards realising growth opportunities in the fast-developing low carbon economy, as expressed by the Group Managing Director/Chief Executive Officer, Access Bank Plc, Mr Herbert Wigwe.