FMO, Proparco and Symbiotics have agreed to provide a subordinated syndicated loan totaling $93.8m to Access Bank, a Nigerian multinational commercial bank, owned by Access Bank Group.

FMO acted as the mandated lead arranger and will be the facility agent.

Linda Broekhuizen, CIO at FMO, said: “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. We have been proud to support the team at Access Bank all those years, during good times and more challenging ones, like today. We are grateful for the opportunity to support our partners at Access Bank again, helping them weather the impacts of COVID-19 and the international oil crisis.”

The facility, structured as a “10 years non-call 5 years” subordinated debt instrument, qualifies fully as Tier-II capital, benefitting the bank for a period of five years.

Gregory Clemente, PROPARCO’s CEO said: “We are thrilled to further strengthen our partnership with Access Bank, a top tier African financial institution committed to mainstreaming sustainable business practices in its operations. This transaction illustrates both Proparco’s 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 as well as our 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.”

Daniel Schriber, Head of Investments at Symbiotics, added: “We are delighted to partner with Access Bank in a crucial time when support to micro, small and medium enterprises is critical to maintain jobs and strengthen livelihoods in Nigeria.”

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. 

The facility will enable 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.

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.

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.”  

“The $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.’’