By Sadeeq Kamsela, Abuja
Access Bank Plc is targeting a fresh 194 billion injection through its latest commercial paper (CP) issuance, as part of its broader N400 billion CP programme.
The latest issue is structured into two tranches: Series 3 and Series 4, with each catering to different investor preferences (according to reports by Nairametrics and other sources), with Series 3, with a 180-day term, features a discounted rate of 19.44% and an effective yield of 21.50%.
The Series 4, spanning 270 days, offers a discounted rate of 20.92%, yielding 24.75% upon maturity, with investors able to subscribe between March 20 and March 25, 2025, with a minimum entry threshold of N5 million, while subsequent investments must be in multiples of N1,000.
Access Bank intends to channel the proceeds from this issuance into short-term financial obligations, including working capital and operational expenditures. As a major player in Nigeria’s financial landscape, the bank continues to blend retail, digital, and corporate banking capabilities to reinforce its market dominance.
Financially, the bank’s performance remains robust. As of Q3 2024, its total assets reached N40.6 trillion, supported by customer deposits amounting to N22.3 trillion. Gross earnings soared by 114.49% year-on-year to N3.418 trillion, driven largely by interest income.
Notably, loans and advances contributed 52% of total earnings, growing by 9.62% year-on-year, while investment income declined by 16%, accounting for 35% of total interest earnings. Borrowings surged by 52% to N3.771 trillion, yet the bank maintained disciplined financial management, with interest expenses on these obligations totalling N198.503 billion—just 8.28% of its total interest income.
Agusto & Co. has reaffirmed Access Bank’s “AA” credit rating, acknowledging its status as Nigeria’s largest bank by assets and its growing influence across Africa. The agency attributes this rating to the bank’s strong capital reserves, asset quality, refinancing capabilities, and seasoned leadership.
However, economic volatility, a relatively high-cost structure compared to other Tier-1 banks, and operational challenges in select African markets remain concerns. The bank also received an ESG score of “2,” signifying that environmental, social, and governance considerations have minimal bearing on its credit standing.
Despite the increased debt burden, Access Bank’s financial resilience allows it to meet obligations without compromising growth. Strong governance and ESG compliance further enhance its reputation as a reliable and responsible institution.
The investment climate is also influenced by macroeconomic trends. With Nigeria’s inflation rate easing from 24.1% in January 2025 to 23.18% in February, investors must weigh their real returns carefully. Series 4 CP, yielding 24.75%, slightly surpasses inflation, ensuring a marginally positive return. On the other hand, Series 3, with a 21.50% yield, lags behind inflation, potentially eroding purchasing power.
Comparing CPs with treasury bills highlights key trade-offs. Government-backed treasury bills provide near-zero risk, but Access Bank’s CPs offer potentially higher returns.
As of March 2025, the one-year treasury bill yield stands at 22.52%—higher than Series 3 CP but lower than Series 4 CP. Investors prioritizing yield over risk mitigation may find the Series 4 CP an attractive alternative to government securities.
