…Arranged by FMO, the loan facility represents the largest syndication in FMO’s history.
…The syndication partners include British International Investment (BII), Belgian Investment Company for Developing Countries (BIO), BlueOrchard, FinDev Canada, Finnfund of Finland, Norfund of Norway, Oikocredit, and Swedfund of Sweden
TUE JULY 16 2024-theGBJournal|Access Bank PLC, sub-Saharan Africa’s largest bank, today secured a US$295 million (N442 billion) loan facility from Dutch Entrepreneurial bank, FMO.
The funding, according to FMO, 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 generation.
There are nearly 40 million MSMEs in Nigeria, accounting for 86 percent of employment and contributing 50 percent to the GDP.
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.
Arranged by FMO, the loan facility represents the largest syndication in FMO’s history.
The syndication partners include British International Investment (BII), Belgian Investment Company for Developing Countries (BIO), BlueOrchard, FinDev Canada, Finnfund of Finland, Norfund of Norway, Oikocredit, and Swedfund of Sweden.
The ceremony, attended by dignitaries including H.E. Amb. Oluremi Oliyide, Nigerian Ambassador to the Netherlands, and representatives from the Dutch government, saw Roosevelt Ogbonna, MD/CEO of Access Bank PLC, express profound gratitude to FMO for their unwavering support and emphasise the bank’s commitment to becoming the world’s most respected African bank by adhering to global best practices and maintaining high standards of accountability.
“Today marks a significant milestone in our longstanding partnerships with FMO. This monumental syndicate Tier II Facility agreement underscores the deep-rooted trust and synergy among our institutions.
“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 catalyse 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,” Roosevelt Ogbonna said of the transaction.
In his remarks, Michael Jongeneel, CEO of FMO, stated: “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.”
Marchel Gerrmann, representing the Dutch government, and members of the syndication partners—BII, Finnfund, and BlueOrchard—were among the distinguished guests who witnessed this agreement.
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