Accelerex registers N20bn bond programme, issues N2.3bn in first tranche

Global Accelerex Limited, Nigerian subsidiary of Accelerex Holdings Mauritius, has registered a N20 billion bond programme and successfully issued a five-year senior unsecured bond of N2.3 billion via a special purpose vehicle, Accelerex Funding SPV PLC.

Announcing this in a statement, Accelerex Holdings Mauritius said the bond is rated BBB+ (Stable Outlook) by Global Credit Ratings (GCR) and Bbb+ (Stable Outlook) by Agusto & Co., and is listed on the FMDQ Exchange.

The issuance, according to the statement obtained by Business A.M, attracted participation from a broad array of institutional investors, including local pension funds, insurance companies and asset managers. Leading financial institutions including FBN Quest Limited, Renaissance Securities Limited, Greenwich Merchant Bank Limited and Nova Bank Limited acted as arrangers.

“The relative strong demand despite the very difficult economic and operating environment confirms the market’s confidence in the company’s creditworthiness, long-term resilience, and significant growth potential,” the statement noted.

The bond issuance, coming after Accelerex’s successful private equity round in 2020, provides its Nigerian subsidiary with critical long-term and local currency capital to fund expansion and support its mission of accelerating the financial inclusion of businesses and individuals across Africa.

In addition, the financial technology company focused on delivering digital payment solutions is only the second ever Nigerian fintech company to successfully place a long-term, investment grade, unsecured bond in the Nigerian capital market. Proceeds from the issuance will be used to finance expansion of distribution channels and general working capital.

Commenting on the development, Olukayode Ariyo, managing director, Global Accelerex Limited, expressed the company’s excitement over the result of the bond issuance, noting that it confirms the market’s interest in advancing digital payments and financial inclusion across Nigeria.

“It is an attestation of the confidence reposed in us, despite the difficult market environment. We thank our bondholders for their belief in our Company. We will press forward with our mission of simplifying everyday life for Africans through accessible, convenient and affordable digital payments and financial services,” Ariyo said.

Paul Kokoricha, director at Accelerex Holdings and chief investment officer at Africa Capital Alliance (ACA), explained that the medium-term bond issuance significantly strengthens the balance sheet and liquidity of Accelerex’s Nigerian operations and provides it with much-needed local currency funding and duration to support its expansion plans.

“As equity investors in Accelerex, we are very excited that Nigerian debt investors were supportive of the deal, thereby providing useful financial leverage and local currency diversification to the Company’s balance sheet,” he said.

Kokoricha noted further that with the strengthened balance sheet, Accelerex and its management team can confidently continue their quest to expand access to Nigeria’s financially under-served population.

Accelerex commenced operations in 2013 and currently operates in Nigeria, Ghana and East Africa, with plans to expand to other parts of the continent in the future.

The company has over 150,000 merchant and agent endpoints across Africa and has consistently ranked as a top three provider of payment channel services, by value of transactions processed, in Nigeria since 2018.

In May 2022, Accelerex was recognized by Financial Times as one of the fastest growing companies in Africa.