ABUJA- Access Bank has asked Citigroup C.N and JP Morgan to arrange a call with global investors this week ahead of a planned Eurobond issue, Nigeria's biggest lender said, after a sovereign issue last week that was heavily oversubscribed.
The latest issue will be the second for Access Bank in less than a month. The top tier lender priced a $500 million Eurobond two weeks ago. It now plans to issue a Basel-III non-call 5.25 year benchmark bond.
The call is fixed for Sept. 27 at 1300 GMT, the bank said in a notice. A notice to investors showed a similar call had been scheduled for Tuesday at 1100 GMT.
It also appointed Renaissance Capital, Mashreqbank as joint bookrunners while local firms Chapel Hill Denham and Coronation Merchant Bank are financial advisers.
The Nigerian lender, with operations in 11 African states, is rated B2 negative by Moody's and B stable by Fitch. It has a $400 million eurobond with a coupon of 9.25 percent due in 2021.
Nigeria issued $4 billion via Eurobonds last week after investors submitted bids of $12.2 billion following an initial offering of $3 billion. The country is also considering an additional issue.
The oversubscription at the sovereign level has paved the way for more corporate bonds to follow.
Access Bank launched an African expansion strategy to counter stagflation and dollar shortages at home that frustrated businesses and shrunk the lending market after it completed the acquisition of rival Diamond Bank.
(Reporting by Chijioke Ohuocha, Editing by Louise Heavens and Edmund Blair) ((chijioke.ohuocha@thomsonreuters.com; +234 703 4180 621; Reuters Messaging: chijioke.ohuocha.thomsonreuters@reuters.net))
