Access Bank Plc has secured a Subordinated Syndicated Loan totaling $162.5 million for on lending to local micro, small and medium size enterprises to support their efforts to create jobs.
The facility was arranged by FMO, the Dutch development bank, 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 Ban
The facility on which FMO is the Msndated Lead Arranger and the agent, qualifies as Tier-II capital to enable Access Bank rolls out its 5-year strategy of becoming Africa’s gateway to the world.
Part of that strategy, according to a statement by Abdul Imoyo, Access Bank spokesman, 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.
Herbert Wigwe, Group Managing Director, Access Bank plc noted on the transaction that “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. 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.”
Linda Broekhuizen, Chief Investment Officer at FMO said: “FMO is proud to be the Mandated Lead Arranger for this 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.”
Access Bank Plc that has just merged with another lender, DiamondBank 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.
It is listed on the Nigerian Stock Exchange in 1998, serving 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 twelve years ranking amongst Africa’s top banks by total assets and capital.
The facility agent, FMO is the Dutch development bank with investment 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. FMO is one of the larger bilateral private sector development banks globally and has an investment portfolio of EUR 9.2 billion spanning over 85 countries
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