Nigeria’s Access Bank secures US$93.8 syndicated loan from FMO, Proparco, and Symbiotics

NIGERIAAccess Bank, Africa’s largest bank by customer base, has secured a syndicated loan amounting to US$93.8 from FMO, Proparco and Symbiotics to enable it support its ambitious African expansion strategy.

Part of Access Bank’s 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.

The facility according to a report by African Global Funds is structured as a “10 years non-call 5 years” subordinated debt instrument and thus qualifies fully as Tier-II capital, benefiting the bank for a period of five years.

Herbert Wigwe, Group Managing Director and CEO at Access Bank, said: “The need to boost capital is extremely important today in the context of the negative socio-economic impact of COVID-19.” 

Wigwe further noted that “the US$$93.8m Tier II capital eligible loan will help us 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,’’ he added.

Access Bank today is the largest bank in Nigeria and Africa’s leading bank by customer base.

It is a full service commercial bank operating through a network of more than 600 branches and service outlets, spanning three continents, 12 countries and 36 million customers.

“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,” Linda Broekhuizen, CIO at FMO, said.

Gregory Clemente, PROPARCO’s CEO said: “This transaction illustrates both Proparco’s commitment to foster the growth of small and medium-sized enterprises in Africa.”

Clemente further noted that this additional Tier II capital will give Access Bank the needed flexibility in the current context.

FMO, a Dutch development bank structured as a bilateral private-sector international financial institution, acted as the mandated lead arranger and will be the facility agent.

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