Access Holdings, led by Nigerian banker Aigboje Aig-Imoukhuede, secures $295-million syndicate loan to boost SMEs

Oluwatosin Racheal Alabi -

Key Points:

  • Access Bank collaborates with FMO to sign a $295-million syndicate Tier II Facility agreement, enhancing capital reserves.
  • The agreement focuses on empowering underserved segments like youth- and women-owned businesses, agricultural enterprises, and very small enterprises.
  • Global DFI partners, including BII and Swedfund, contribute to the syndicate loan, fostering Nigeria’s private sector and economic growth.

Access Holdings Plc, led by Nigerian banker and investor Aigboje Aig-Imoukhuede, has announced its partnership with the Dutch Entrepreneurial Development Bank (FMO). 

Access Bank has collaborated with FMO to sign a syndicate Tier II Facility agreement valued at $295 million.

The agreement showcases a longstanding and successful relationship that has spanned over two decades and represents a crucial step forward in promoting economic growth.

A landmark partnership

“Access Bank Plc, sub-Saharan Africa’s largest bank by customer base, has celebrated a landmark moment in its partnership with the Dutch Entrepreneurial Development Bank (FMO). Access Bank secures $50 million from British International Investment as part of a $295-million loan package to aid SMEs.

The occasion marked the signing of a monumental syndicate Tier II Facility agreement of $295 million (equivalent to about N442,500,000,000), underscoring a relationship that has flourished for over two decades,” the Bank said.

The Bank noted that its collaboration with FMO began in 2003, reflecting a shared commitment to economic development in Nigeria. The latest agreement, the third of its kind arranged by FMO for Access Bank, goes beyond a mere financial transaction, serving as proof of the deep-rooted trust and synergy between the two institutions.

Empowering local SMEs

The bank explained that the investment is the result of a collective effort involving a syndicate of Global DFI partners, each playing a crucial role in strengthening Nigeria’s private sector. The syndicate includes names such as 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 financial infusion is earmarked to empower local small and medium-sized enterprises (SMEs), with a particular focus on underserved segments such as youth- and women-owned businesses, agricultural enterprises, and very small enterprises.

Roosevelt Ogbonna, managing director and CEO of Access Bank Plc, expresses profound gratitude to FMO for their support and emphasises 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,” he said.

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.”

Billionaires.Africa earlier announced a $229-million capital raise through a rights issue to existing shareholders. The move, revealed at a formal signing ceremony in Lagos, marks a milestone in the group’s expansion plans, both within Africa and globally. The rights issue, valued at N351 billion ($229 million), aims to enhance Access Holdings’ working capital and support organic growth across its banking and non-banking subsidiaries.