Nigeria’s Access Bank secures $280mln funding to support SMEs

The funding is expected to address the financing gap of at least 4,000 SMEs

International Development Finance Corporation (DFC), the US government’s development finance institution, signed a commitment letter for $280 million in financing for Nigeria’s Access Bank.

The loan will help address the financing gap of at least 4,000 small- and medium-sized enterprises (SMEs) and advance financial inclusion in Nigeria. It will also encourage the bank’s commitment to supporting women-owned businesses in Nigeria.

The loan proceeds will be on-lent across more than a dozen sectors in the Nigerian economy, with specific focus on women-owned SMEs, and on loans with longer tenors, which will provide more flexibility to borrowers, according to a statement from DFC.

Furthermore, DFC financing for Access Bank will provide needed liquidity given the global economic downturn caused by the COVID-19 pandemic.

“We look forward to utilizing the partnership with DFC in driving further economic expansion and inclusion in Nigeria, with a strong focus on non-oil sectors and women businesses,” Roosevelt Ogbonna, Managing Director of Access Bank, said in a statement.

Access Bank is one of the largest banks in Nigeria and has banking subsidiaries throughout Africa.  Citibank acted as the coordinator and arranger/co-lender to help facilitate the loan.

Source: zawya.com