Project detail - ACCESS BANK PLC NASIRA PORTFOLIO

ACCESS BANK PLC NASIRA PORTFOLIO

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Who is our client

Access Bank Plc (“AB”) is a full-service commercial bank operating through a network of more than 700 branches and service outlets located in major centers across three continents. Apart from the Nigerian operations, the bank has 11 subsidiaries in Africa, one in the UK (with a branch in Dubai, UAE) and three representative offices: China, India and Lebanon. Access Bank Plc is listed on the Nigerian Stock Exchange since 1998 and provides a wide range of banking and financial services via four main business segments: Corporate & Investment banking, Commercial Banking, Business Banking and Personal Banking.

Funding objective

FMO will provide a revolving unfunded (NASIRA) portfolio guarantee covering loans provided to Nigerian MSMEs affected by the COVID-19 crisis including young & female entrepreneurs.

Why we fund this project

The NASIRA program is a risk sharing facility for local financial institutions. It is an innovative way of unlocking support to underserved segments: young, migrant, women and COVID-19 affected entrepreneurs. The program with Access Bank will have a special focus on Nigerian COVID-19 affected businesses including young & female entrepreneurs. The NASIRA target groups often remain underbanked due to high risks - both perceived and real - involved in lending to them. This is, amongst others, due to absence of collateral and credit history. The guarantee program takes away this hurdle, by agreeing in advance to share possible credit losses. A technical assistance program is ready to support Access Bank in the development of financial and non-financial products and services to these target groups.

Environmental and social rationale

Access Bank an existing client of FMO. The bank is classified as E&S Category A in accordance with FMO’s Policy. The clients in Access Bank’s portfolio are active in sectors which have potential significant and adverse environmental and social impacts, such as oil & gas, agriculture and construction. Examples of environmental and social challenges the bank is addressing in its portfolio are occupational health & safety, poor working conditions, affected communities, vandalism of pipelines, and waste management. Access Bank has a team of environmental & social experts within the bank that work with the bank’s clients to mitigate the negative impacts of their activities. Access Bank is a signatory of the Equator Principles. In the last few years, the bank received a number of national and international sustainable banking awards. This is a clear recognition from external stakeholders that Access Bank is performing above sector average on environmental & social risk management. As part of the agreement with Access Bank, the bank will be required to apply the EDFI Exclusion List, local E&S laws and regulations (including the Nigerian Sustainable Banking Principles) and the IFC Performance Standards Framework for certain identified projects.

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Date Total FMO financing
12/9/2021 NGN 102.50 MLN
Region
Africa
Country
Nigeria
Sector
Financial Institutions
Signing date
12/9/2021
Total FMO financing
NGN 9635.00 MLN
Fund
FMO
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)