Home Business & Economy FMO arranges $162.5m loan to Access Bank

FMO arranges $162.5m loan to Access Bank

FMO arranges $162.5m loan to Access Bank

Access Bank Plc has confirmed its signing of what it described as subordinated syndicated loan agreement totaling $ 162.5 million.

The facility, the bank said was arranged by FMO, the Dutch development bank, and is provided 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 Bank acting on behalf of the European Community and Norfund (Norwegian Investment Fund for Developing Countries). FMO acted as the Mandated Lead Arranger and will be the Facility Agent.

The facility it was gathered will qualify as Tier-II capital, which will enable Access Bank to roll out its 5-year strategy of becoming Africa’s gateway to the world. Part of that 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.

Access Bank Plc. 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.

FMO on the other hand is the Dutch development bank. FMO has invested 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 including financial institutions, energy, and agribusiness.

Speaking on the transaction, Herbert Wigwe, Group Managing Director and Chief Executive Officer at Access Bank plc said “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.”

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