Fitch: Access Bank Has Enough Forex to Repay $1bn Eurobond This Year

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Access Bank Plc has sufficient foreign currency liquidity to comfortably service its $1 billion external debt obligations maturing later this year. Fitch Ratings disclosed this in its latest institutional credit assessment. The global agency also affirmed the bank’s Long-Term Issuer Default Rating at ‘B’ with a Stable Outlook.

Two Major Repayments Due in Q3 2026

The financial institution faces two significant hard-currency repayments in the third quarter of 2026. These include a $500 million Additional Tier 1 Eurobond callable in October and a $500 million senior unsecured Eurobond maturing in September.

According to Fitch, despite macroeconomic headwinds and tight domestic liquidity, Access Bank’s liquidity runway remains resilient enough to absorb these maturing obligations without triggering capital flight stresses.

Cross-Border Operations Provide Buffer

A senior credit analyst at Fitch noted that the bank’s diversified cross-border operations have provided the necessary buffers to absorb sovereign shocks. “Fitch believes that the bank’s foreign currency liquidity is sufficient to meet the upcoming repayments,” the analyst said.

The analyst added that Access Bank’s recent aggressive international expansions have repositioned its operational baseline. “The acquisition and consolidation of Mauritius-based AfrAsia Bank Limited in 2025 have improved our assessment of Access Bank’s operating environment, adding a large amount of investment-grade assets to its balance sheet,” he explained.

Capital Ratio Tight But Manageable

However, Fitch noted that Access Bank’s standalone Capital Adequacy Ratio settled at 17.4 per cent in the first quarter of 2026. This leaves a relatively tight buffer over the 15 per cent regulatory minimum requirement.

An investment banking strategist observed that redeeming the $500 million debt instruments could exert temporary pressure on core capital ratios due to historical foreign exchange adjustments. “A redemption will reduce core capital because these notes are currently accounted for at a pre-devaluation exchange rate,” the strategist stated.

He maintained that the Tier 1 lender is already implementing remedial balance sheet measures. “Access Bank has already raised tier-two capital and actively plans to further strengthen its standalone CAR through internal capital generation and the planned sale of minority stakes in some foreign subsidiaries,” he said.

Asset Quality Stable

Fitch reported that the bank’s asset quality remained stable. Its impaired loans ratio held firm at three per cent at the end of 2025. This is supported by a moderate oil and gas sector credit concentration of nine per cent of gross loans, which remains significantly lower than its domestic peer average.

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