Access Bank plc on Monday announced that it has signed a subordinated syndicated loan agreement totalling $162.5 million with FMO, the Dutch development bank.
The facility will qualify as Tier-II capital, which will enable Access Bank to roll out its five-year strategy of becoming Africa’s gateway to the world. Part of that strategy is also to deepen the footprint in the retail segment as well as increasingly support local Micro, Small, and Medium-size Enterprises, thereby supporting job creation in the Nigerian economy.
According to a statement made available to BusinessDay, the facility has been arranged by FMO and is provided together with BIO (Belgian Investment Company for Developing Countries SA/NV), Blue Orchard Microfinance Fund, CDC Group plc, DEG (Deutsche Investitions-und Entwicklungsgesellschaft mbH), Finnfund (Finnish Fund for Industrial Cooperation Ltd), Oikocredit (Ecumenical Development Cooperative Society U.A.) and European Financing Partners S.A, funded by the European Investment Bank acting on behalf of the European Community and Norfund (Norwegian Investment Fund for Developing Countries). FMO acted as the Mandated Lead Arranger and will be the Facility Agent.
“We are pleased to have worked with a world-class group of lenders on this transaction. The deal further reinforces the fact that our institution remains globally respected and reputable,” Herbert Wigwe, group managing director and chief executive officer, Access Bank plc, said regarding the transaction.
“The syndicated facility is geared towards supporting the bank’s efforts to promote the growth and job creation potential of the private sector through improved access to financing. Additionally, specific attention will also be paid to strengthening Micro, Small and Medium-size enterprises as many have been held back due to a lack of access to finance. We believe this relationship will be the beginning of many more international partnerships with such entities,” Wigwe said.
Linda Broekhuizen, chief investment officer at FMO, said the Dutch development bank was proud to be the Mandated Lead Arranger for the landmark transaction.
“Through this transaction, FMO strengthens its long-standing relationship and commitment to our well-reputed client Access Bank. All lenders are pleased to be significant contributors to fostering the Nigerian economy and supporting job creation,” Broekhuizen said.
Access Bank plc is a full-service commercial bank operating through a network of 380 branches and service outlets located in major centers across Nigeria, sub-Saharan Africa, and the United Kingdom with representative offices in China, Lebanon, India and the UAE.
Listed on the Nigerian Stock Exchange in 1998, the bank serves its various markets through four business segments: Personal, Business, Commercial, and Corporate & Investment Banking. The bank has over 830,000 shareholders including several Nigerian and international institutional investors and has enjoyed what is arguably Africa’s most successful banking growth trajectory in the last 12 years ranking amongst Africa’s top banks by total assets and capital.
As part of its continued growth strategy, Access Bank is focused on mainstreaming sustainable business practices into its operations.
FMO is the Dutch development bank and has invested in the private sector in developing countries and emerging markets for more than 45 years. Its mission is to empower entrepreneurs to build a better world. FMO invest in sectors where it believes its contribution has the highest long-term impact: financial institutions, energy, and agribusiness. With an investment portfolio of EUR 9.2 billion spanning over 85 countries, FMO is one of the larger bilateral private sector development banks globally.
HOPE MOSES-ASHIKE
