ACCESS BANK PLC.
Status: Approved investmentWhy disclosure?
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Disclaimer
The information as disclosed is indicative and provided on an "as-is/as available" basis for general informational purposes only and should not be construed as financial, legal or investment advice, nor as a commitment or an offer to arrange or provide any financing. The final decision to provide financing is subject to the terms and conditions of FMO in its sole and absolute discretion. When providing links to other sites, FMO bears no responsibility for the accuracy, legality or content of the external site or for that of subsequent links. The information on proposed investment for high-risk investments is made available in the language relevant to the country or region where the bulk of operations take place. Translations of any information into languages other than English are intended as a convenience for local stakeholders. In case of any discrepancy, the information provided in English will prevail.
Who is our customer
Access Bank Plc (“AB”) is a full-service commercial bank operating through a network of more than 740 branches in Nigeria and across Africa. AB is the largest Bank in Nigeria by total assets and has fourteen banking subsidiaries and growing, with thirteen (13) in Africa and 1 in the UK. AB also has three (3) representative offices; in China, India, and Lebanon, and through the UK subsidiary, it has branches in the UAE, Hong Kong and France. The Bank is ambitious to grow its African footprint further and become among the top 5 African banks in 2027. AB is 100% owned by Access Holding, a Nigerian Stock Exchange-listed entity. The Bank provides a wide range of banking and financial services via four main business segments: Corporate & Investment Banking, Commercial Banking and Retail Banking with key customers across different sectors.
What is our funding objective?
FMO acted as mandated lead arranger for a syndicated subordinated Tier II debt facility of USD 295million. FMO will provide USD 90million, and USD 205million has been mobilized. The syndicate comprises DFIs and impact investors (BII, BIO, BlueOrchard, FinDev Canada, FinnFund, Norfund, Oikocredit, and Swedfund). In addition to strengthening the capital base of Access Bank Plc, the facility will be allocated equally to underserved Micro-, Small, and Medium-sized Enterprises (MSMEs) (50%) and general Small and medium-sized enterprises (SMEs) (50%), thereby contributing to reducing inequalities and supporting job creation in the Nigerian economy.
Why do we fund this investment?
With this investment FMO continues its support to Access Bank, fostering sustainable business growth by financing Nigerian corporates and MSMEs. This partnership empowers Nigerian corporates and MSMEs to expand their operations, generate employment, and drive the sustainable economic progress and expansion of Nigeria's real economy. The proposed facility objectives include reducing inequalities by focusing not just on SMEs but also on those SMEs typically marginalized in accessing financial services.
What is the Environmental and Social categorization rationale?
Access Bank is classified as E&S Category A by FMO’s policy. The bank’s portfolio includes significant exposure to high-risk sectors such as heavy manufacturing, Construction, Agriculture, Power and energy, and Oil & Gas. AB manages portfolio E&S risks through the implementation of a functional Environmental and Social Management System (ESMS). The Bank has also embedded sustainability in its corporate philosophy. The bank's sustainability commitments are further substantiated by its subscribing to global initiatives, such as being a signatory to the Equator Principles and UN Global Compact, integrating the Task Force on Climate-related Financial Disclosures (TCFD) recommendations, and being a member of the Nigerian Sustainable Banking Principles Steering Committee. Having been the first Nigerian bank to issue a Green Bond, AB has firm ambitions to substantially grow the green portfolio relative to the total loan book in the next five years.
More investments
| Date | Total FMO financing |
|---|---|
| 12/9/2021 | USD 45.00 MLN |
| 7/23/2020 | USD 55.00 MLN |
| 3/7/2024 | USD 30.00 MLN |
| 1/12/2023 | USD 38.00 MLN |
| 10/29/2019 | USD 30.00 MLN |
- Region
- Africa
- Country
- Nigeria
- Sector
- Financial Institutions
- Publication date
- 7/26/2024
- Effective date
- 7/12/2024
- Total FMO financing
- USD 90.00 MLN
- Funding
- FMO NV
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Risk categorization on environmental and social impacts, A = high risk, B+ = medium high risk, B = medium risk, C = low risk
Environmental & Social Category
(A, B+, B or C) - A