Dutch Bank, Others Syndicate $93.8m Loan To Access Bank
Dutch Development Bank, FMO, along with two others, Proparco and Symbiotics, is syndicating a subordinated loan of $93.8 million to Access Bank, a Nigerian multinational commercial bank
FMO is the lead agent for the facility to Access Bank.
Chief Information Officer of FMO, Linda Broekhuizen, who announced this on Thursday, said the facility is structured as a “10 years non-call 5 years” subordinated debt instrument.
She said that the facility, which qualifies fully as Tier-II capital, will benefit Access Bank for a period of five years.
She added, “This facility will enable the Access Bank to roll out its strategy of becoming Africa’s gateway to the world even after the COVID-19 and the international oil crisis.
“Once a very small player in the Nigerian financial services sector, whereas today, Access Bank is the largest bank in Nigeria with a wide array of financial services, including some very exciting gender finance work.”
She stated that FMO is proud to support the Nigerian bank to weather the impacts of COVID-19 and the international oil crisis.
The Chief Executive Office of PROPARCO, Gregory Clemente, explained that the transaction illustrates its commitment to foster the growth of small and medium-sized enterprises in Africa thanks to its partnership with African financial institutions within the Choose Africa initiative.
“It also illustrates renewed support to our existing clients in a challenging economic environment.
“This additional Tier II capital will give Access Bank the needed flexibility in the current context,” he remarked.
He commended Access Bank’s commitment to mainstreaming sustainable business practices in its operations.
Group Managing Director/CEO of Access Bank, Herbert Wigwe, said the $93.8m Tier II capital loan will help the bank to continue to sustainably support businesses that need finance.
“These businesses will be able to continually provide essential products and services thereby achieving sustainable and inclusive growth.’’
“The need to boost capital is extremely important today in the context of the negative socio-economic impact of COVID-19,” Wigwe said.