March 25, 2020/NSE
Access Bank, in March 2019, became the first Nigerian bank to issue a green bond. The NGN15 billion Access Bank Green Bond was fully subscribed. The proceeds of the issuance formed a new financing pool, which was allocated to build environmental resilience, deliver on clean energy, and foster sustainable use of land. This is another validation for our strong commitment to sustainable economic development in Nigeria and in the African region.
With NGN14.623 billion (98.7%) already allocated to, a climate change mitigation project for flood defense and two renewable energy assets, we are glad to present the first Impact Report of the inaugural green bond by Access Bank. This timely report is customary to Access Bank’s compliance practice. We believe this report is critical to sustaining the confidence of investors and support of our diverse stakeholders.
At Access Bank, we are totally dedicated to fostering economic and financial prosperity that is environmentally-responsible and socially-inclusive. To achieve this strategic objective, we have embedded sustainability in all our business processes, policies and offerings. The vital knowledge and experience gained from our first green bond issuance, coupled with its success, has reassured us that Access Bank is well-positioned to create green assets, manage the portfolios and generate returns. The green bond has demonstrated that sustainability is more than an advocacy for doing the right things, it is also a framework and a strategy for creating financial assets to serve our customers and fund eligible projects.
Our sustainability strategy aligns with global best practice. Access Bank is a committed member of, or signatory to, various global initiatives for promoting the United Nations Sustainable Development Goals (SDGs) and the Paris Climate Accord. The initiatives include the United Nations Environment Programme Finance Initiative (UNEP FI), Principles for Responsible Investments (PRI), and the UNEP FI Principles for Responsible Banking. The Bank is also a participant in the second pilot phase of the Taskforce on Climate-related Financial Disclosures (TCFD).
We are champions of these global principles where CEO Statement Herbert Wigwe Managing Director/Chief Executive Officer we operate and in the communities we serve. I am happy to note that the Access Bank Green Bond has been invested to support Nigeria’s Nationally Determined Contribution (NDC) under the Paris Climate Accord. In 2019, we launched the Access Bank Sustainability Summit in Lagos to build a community of practice for sustainability in Nigeria. The green bond is featured in our 2019 Sustainability Report. This is aimed at increasing awareness among our stakeholders as we continue to mainstream sustainability into our strategy, operations, financing, investor relations, and social and environmental scorecard.
We hope to continue to enjoy the support of our investment partners and broader stakeholders in our efforts to continue to grow our portfolio of sustainable finance at Access Bank and leverage our leadership credentials in sustainability.
This report gives an overview of the allocation of eligible green assets to the Access Bank Green Bond and describes the impact of the Green Bond at a portfolio level. The issuance of Access Bank’s Green Bond is fully integrated into the Bank’s sustainability strategy. * The directors of Access Bank PLC are responsible for the preparation of this report and all supporting records, including selecting appropriate reporting criteria to form the Green Bond Policy and assessing the statement as to Use of Proceeds against that policy. The allocation and tracking of funds received is the responsibility of our Green Bond Committee as described on page 24 in this report. We confirm that the statement as to Use of Proceeds is properly prepared in accordance with the policy for the period ended 29 February, 2020.