Today FMO announced a USD295 million syndicated loan facility to Access Bank. The funding will support underserved Small, and Medium Enterprises (SMEs) including those led by women and youth, providing access to working capital and supporting resilience as Nigeria faces its most severe economic crisis in a generation. This loan facility, arranged by the Dutch entrepreneurial development bank FMO, represents the largest syndication in FMO’s history. Access Bank is Nigeria’s leading bank, committed to providing support to SMEs through funding, capacity building and networking opportunities.
In addition to FMO, the syndication partners include UK’s development finance institution and impact investor British International Investment, the Belgium development financial institution BIO, impact investor BlueOrchard, Canada’s Development Finance Institution FinDev Canada, the Finnish development financier and impact investor Finnfund, the Norwegian development finance institution Norfund, social impact investor Oikocredit, and the Swedish development finance institution Swedfund.
There are nearly 40 million MSMEs in Nigeria, accounting for 86 percent of employment and contributing 50 percent to the GDP.
[1] Despite their importance to the Nigerian economy, many small businesses face challenges with accessing finance due to onerous collateral requirements, high interest rates and lack of formal credit history. The commitment from the nice syndication partners will help to expand Access Bank's capital reserves and provide much-needed working capital and financing to Nigerian businesses across various sectors including agriculture. This will help to stimulate business growth, create more jobs and deepen financial inclusion in Nigeria, which is the most populous country in Africa.
“This agreement marks yet another significant achievement in our longstanding partnership with the Dutch Entrepreneurial Development Bank. This monumental syndicate Tier II Facility agreement underscores the deep-rooted trust and synergy between our institutions. For us at Access, this facility not only enhances our capital reserves but also strengthens Africa's trade capabilities and export potential. Putting these funds to use, we aim to catalyze growth across various sectors, stimulate business development, create jobs, and deepen financial inclusion, aligning with Access Bank's mission to drive progress and development throughout the continent and beyond,” CEO of Access Bank Roosevelt Ogbonna said.
Michael Jongeneel, CEO of FMO, added: ,,We extend our gratitude to our longstanding partner Access Bank and our syndication partners for their outstanding cooperation and collective effort in making this loan facility a reality. The syndicated loan provides significant support to SMEs in Nigeria, particularly underserved segments such as women and young entrepreneurs, aligning perfectly with our shared strategy to enhance financial inclusion and empower local entrepreneurs in the agribusiness and SME sectors.''
