COVID 19: Access Bank Signs $93m Syndicated Loan Agreement

Bukola Olanrewaju August 19, 2020 Banking and Finance, BUSINESS Leave a comment

Access Bank Plc said it has signed a subordinated syndicated loan agreement totalling $93.8m with the Dutch development bank (FMO), the French private sector development bank (Proparco), and leading investment firm, Symbiotics.

It said this in a statement on Tuesday, entitled, “Access Bank improves COVID-19 resilience with $93m syndicated loan agreement.”

The tier-II capital facility was structured as a “10 years non-call five years” subordinated debt instrument, benefitting the bank for a period of five years.

The Group Managing Director, Access Bank Plc, Herbert Wigwe, said the facility would 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.

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He stated, “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 $93.8m 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.”