Project detail - ACCESS BANK RD CONGO SA

ACCESS BANK RD CONGO SA

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Who is our client

Access Bank DR Congo SA is a subsidiary of long-standing client Access Bank Plc of Nigeria. Access Bank is part of a pan-African financial group listed on the Nigerian Stock Exchange. It strives to deliver sustainable economic growth that is profitable, environmentally responsible, and socially relevant. FMO and Access Bank have a partnership in Nigeria and Ghana extending back almost two decades.

Funding objective

A USD 10 mln senior unsecured loan will facilitate the finance of Access Bank’s small and medium-sized enterprises (SME) portfolio in the DRC. The project has a strong emphasize on social and environmental safeguards, particularly on potential human rights impacts.

Why we fund this project

The transaction is in line with Goals 8 and 10 of the UN Sustainable Development Goals (SDGs), focused on Decent Work and Economic Growth, and Reducing Inequalities. It will support economic development in the DRC, where the majority of the population is unbanked and financial markets are underserved by foreign capital. Promoting loans to SME clients and providing them with access to capital will empower local entrepreneurs and support job creation. The loan will be allocated in two tranches of USD 5mln. FMO’s financing package is partially funded by the Dutch government’s MASSIF fund, which aims to take the early investment risks and act as a catalyst for the growth of the private financial sector while stimulating financial inclusion in developing countries with a focus on fragile states.

Environmental and social rationale

Access Bank DRC is classified as an E&S category B. The portfolio sector breakdown shows a limited exposure to high risk activities. Furthermore, the bank so far does not finance any project finance transactions. This confirms the SME profile of the bank. Based on the current understanding of the activities financed by AB DRC, taking into account the full portfolio exposure, it can be concluded that the bank’s E&S risks are low to medium. FMO and Access Bank have given careful consideration to the complex operating environment and country risks in the DRC, which stem from its recent history of conflicts. Access Bank has a leading role in Africa on environmental, social and governance (ESG) topics and, over the years, has received various awards and recognitions for its sustainable banking approach. Extensive due diligence was conducted prior to approval of the deal, with a strong focus on human rights impacts, by Environmental & Social Officers both from FMO and Access Bank Nigeria. Through its continued partnership with Access Bank, FMO will support the organization in development and implementation of a well-functioning Environmental and Social Management System – a set of policies, procedures, and tools to help manage the bank’s exposure to the environmental and social risks of its clients as well as take any corrective actions needed.

More investments

Date Total FMO financing
12/13/2019 USD 5.00 MLN
Website client
https://congo.accessbankplc.com/
Region
Africa
Country
Congo, the Democratic Republic of the
Sector
Financial Institutions
Signing date
12/13/2019
Total FMO financing
USD 5.00 MLN
Fund
MASSIF
Risk categorization on environmental and social impacts, A = high risk, B+ = medium high risk, B = medium risk, C = low risk Environmental & Social Category
(A, B+, B or C)
B