Access to raise $2b on bond market
Published:Sunday | July 17, 2022 | 12:06 AM
Microlender Access Financial Services Limited plans to raise $2 billion through an unsecured bond, mainly to refinance existing debt.
“The proceeds from the offer will be used to repay existing bonds at $1.3 billion and provide working capital to support the increased demand for loans,” said Deveta McLaren, sales and marketing manager at Access Financial.
The bond is being arranged by Proven Wealth for issue on July 18 and will mature in five years.
The coupon on the bond will be fixed at 11 per cent for the first two years and then repriced based on the prevailing three-month Treasury bill rate plus 3.0 per cent for the next three years.
Access currently holds $2.9 billion in capital with total assets of $5.7 billion. Its loan book was valued then at $4.5 billion at year ending March 2022.