Access Bank Plc
Region and country of operations: Africa, Nigeria
Jurisdiction of registration: Nigeria
Business sector: Bank
Date of agreement (month/year): 12/2020
Finnfund’s financing: USD 10,000,000
Share of Finnfund’s financing: 11%
Instrument: Subordinated Tier II loan
Size of project/financing: USD 93,000,000
Environmental and social category: FI-A
Access Bank is the largest bank in Nigeria with more than 36 million customers. Access Bank serves retail, small and medium-sized enterprises (SMEs) and corporate clients through almost 400 branches across Nigeria. Access Bank has a long history with Development Finance Institutions, and it has implemented corporate governance and risk management practices, including those related to E&S sustainability. Access Bank’s vision is to become Africa’s gateway to the world.
The funding provided by Finnfund will be allocated to strengthen Access Bank’s Tier II capital and enable the bank to provide increased financing to SMEs in Nigeria during economic crisis due the COVID-19 pandemic.
Main development impact
Due to the loan facility’s Tier II nature, Access Bank is able to leverage the facility to attract more funding to finance SMEs. Financing SMEs will enable them to invest in their businesses which leads into job creation and contributes to the country’s overall economic development and growth, as lack of access to finance is a reason that many of these businesses struggle. Further, the bank is a forerunner in women’s financial empowerment. This transaction qualifies for the 2X Challenge portfolio based on the 2X Eligibility Criteria on employment, leadership, and consumption.