Access, Union Bank Issue 60 Billion Naira Bond

Access Bank and Union Bank have each issued a 30 billion-naira bond taking advantage of falling yields on the local currency debt market, banks leading the bond sales said on Monday.

Access Bank sold a seven-year bond at a 15.5% yield, while mid-tier rival Union priced its 10-year bond to yield 16.2%. Union’s sale is part of a 100-billion-naira debt issuance programme.

Yields in naira bond market have dropped from a high of 18% since the government redeemed some of its treasury bills in 2017 to lower borrowing costs. Yields on the one-year treasury bill were last auctioned at around 11%.

Union and Access Bank, which merged with mid-tier Diamond Bank in April, did not say how they would use the proceeds of the bond sales.

The Central Bank of Nigeria, CBN has said it would pursue a recapitalisation of the banking sector over the next five years after a series of currency devaluations weakened banks’ capital.