Agusto & Co. affirms the “Aa-” rating of Access Bank Plc’s ₦15 billion 5-year Fixed Rate Unsecured Green Bond Due 2024
The rating expires on 31 December 2020.
Agusto & Co hereby affirms the ‘Aa-’ rating of Access Bank Plc’s (“Access Bank”, “the Bank” or “the Issuer”) ₦15 billion Five Year Fixed Rate Unsecured Green Bond Due 2024 (“the Bond” or “the Issue”). PricewaterhouseCoopers, a certified green bond verifier, has assessed the conformity of nominated projects with the pre-issuance requirements of the Climate Bond Standard (version 2.1) issued by the Climate Bond Initiative in 2017.
The assigned rating reflects the standalone ‘Aa-’ credit rating of Access Bank Plc by Agusto & Co. Limited and the pari passu ranking of the Bond with other senior unsecured obligations of the Bank. Access Bank’s rating is underpinned by its strong industry position following its merger with the erstwhile Diamond Bank Plc which was concluded in March 2019. The Issuer has a good brand franchise, an experienced management team and adequate capitalisation levels. Offsetting these positive rating factors are a deterioration in the asset quality of the combined entity and sectoral concentration in the loan book. The fragile Nigerian macroeconomic environment is also a threat to the banking industry’s asset quality.
This Rating Release is transmitted to you for the sole purpose of dissemination through your newspaper / magazine / agency. The rating release may be used by you in full or in part without changing the meaning or context thereof but with due credit to Agusto & Co.