- Access Bank improves COVID-19 resilience with $93 million Syndicated Loan Agreement
Nigerian banking giant, 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 5 years” subordinated debt instrument, benefitting the bank for a period of 5 years.
According to Herbert Wigwe, Group Managing Director, Access Bank PLC, the facility will enable the Bank to 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.
The transaction is evidence of Access Bank’s commitment to facilitating economic growth and development in Nigeria and Africa as well as creating business opportunities for all stakeholders including women, across its entire value chain. We are truly inspired and we remain committed to our goal of being Africa’s gateway to the world,” Wigwe concluded.
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. 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.”
Commenting further on the partnership, Gregory Clemente, PROPARCO’s Chief Executive Officer 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.”
For its unwavering drive to promote women economic empowerment, the Bank was recently named among qualifiers for the 2X Challenge. The 2X eligibility criteria were based on efforts put towards employment, leadership and consumption.
Daniel Schriber, Head of Investments at Symbiotics said: “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.”