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Access Bank PLC has announced the signing of a Subordinated Syndicated Loan Agreement totalling $93.8 million with the Dutch development bank (FMO), the French private sector development bank (Proparco) and leading investment firm, Symbiotics.
The tier-II capital facility was structured as a “10 years non-call five years” subordinated debt instrument, benefitting the bank for a period of five years.
According to Herbert Wigwe, the bank’s group managing director, the facility would enable the bank continue on its strategic path to becoming Africa’s gateway to the world even after the unexpected simultaneous surfacing of the two ‘Black Swans’ in 2020: COVID-19 and the international oil crisis.
“This deal is in line with our strategy to deepen Access Bank’s 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. The need to boost capital is extremely important today in the context of the negative socio-economic impact of COVID-19, hence, the $93.8 million Tier-II capital eligible loan will help us 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.
Reiterating Wigwe’s statement, Linda Broekhuizen, Chief Investment Officer at FMO said: “Once a very small player in the Nigerian financial services sector, Access Bank has become the largest bank in Nigeria with a wide array of financial services, including some very exciting gender finance work.”
