44047 - WCS Crisis Response Access Bank PLC

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Summary of Investment Information

Project Number

44047

Company Name

ACCESS BANK PLC

Date SPI Disclosed

Jun 23, 2020

Country

Nigeria

Region

Africa

Projected Board Date

Jun 16, 2020

Environmental Category

FI-2 - Limited

Status

Completed

Last Updated Date

Apr 6, 2024

Department

CF3S6 - Regional Industry - FIG ME & Africa/FIG Inv Ops - Africa

Industry

Financial Markets

Previous Events

Approved : Jun 26, 2020
Signed : Jun 30, 2020
Invested : Jul 27, 2020

Sector

Commercial Banking - Trade and Supply Chain

Additional Project Attributes

Blended Finance

Project Description

The proposed investment consists of a one-year, renewable unsecured senior loan of up to US$50 million to Access Bank PLC (“Access Bank” or “Bank”) under the FIG COVID-19 Emergency Response Working Capital Solutions Envelope (WCS Envelope). The WCS Envelope is designed to provide funding to existing IFC client banks in emerging markets that will then extend new trade-related or working capital loans to companies whose cash flows have been disrupted by the global outbreak of the corona virus pandemic. The WCS facility will support the Bank in increasing its lending to FMCG companies importing raw materials, petroleum products, goods and commodities traders, corporates and Small and Medium Enterprises.

Associated Advisory Engagement

N/A

Sponsor / Cost / Location

Access Bank is a leading full-service commercial bank operating through a network of more than 660 branches and service outlets, spanning 12 countries, and 36 million customers. The Bank employs 28,000 people in its operations and has subsidiaries across Sub-Saharan Africa and the United Kingdom (with a branch in Dubai, United Arab Emirates) and representative offices in China, India, and Lebanon.

Listed on the Nigerian Stock Exchange since 1998, Access Bank combines a strong retail customer franchise and digital platform with deep corporate banking expertise and proven risk management and capital management capabilities. The Bank serves its various markets through four business segments: retail, business, commercial, and corporate. It has over 900,000 shareholders (including several Nigerian and international institutional investors). Through its merger with Diamond Bank, a former IFC client, in March 2019, Access Bank has acquired a retail customer base, and transformed into the largest bank in Nigeria by total assets, customers, deposits and net loans.

The shareholding of the Bank is as follows:

S/N	SHAREHOLDERS	HOLDING	HOLDING
1	STANBIC IBTC, NOMINEES LIMITED/C012 - MAI	4,823,611,966	15.70
2	AGL AFRICA, EX-SA EQUITY (USD) FUND-TRAD	1,293,809,440	4.21
3	FUTUREVIEW HOLDINGS LTD	1,180,833,188	3.84
4	TRUST AND, CAPITAL LIMITED	1,168,113,958	3.80
5	UNITED ALLIANCE COMPANY OF NIG.LTD.	1,075,468,437	3.50
6	CSSAF DBN HOLDINGS - MAIN	1,030,057,504	3.35
7	ZPC/SIBTC RSA FUND/MAIN,	997,884,171	3.25
8	ALLAN GRAY, AFRICA EQUITY FUND - TRADING	663,338,644	2.16
9	CADENCE CAPITAL LIMITED	649,913,339	2.12
	Top 9 shareholders	12,883,030,647	41.93
	Others	22,662,194,975	58.07
	Grand total	35,545,225,622	100

Stanbic IBTC Nominees Limited, a wholly owned subsidiary of Stanbic IBTC Bank Plc is the largest custodian on non-pension assets in Nigeria. It provides custodial services to both local and international clients taking investment positions in Nigeria.
Trust and Capital and United Alliance Company of Nigeria (with a total shareholding of 7.3%) represent an indirect holding owned by the CEO of the Bank, Herbert Wigwe, as well as the previous CEO, Aigboje Aig-Imoukhuede, who holds no official role in the Bank other than as a shareholder.

Product Line	IFC Investment (million USD)
Risk Management
Guarantee
Loan	50.0
Equity

IFC's loan to the financial institution described in this SII is targeted for on-lending to the following sector(s):

Product Type	Use of Proceeds
Straight Senior Loan	Loans to Corporates
Straight Senior Loan	Loans to SME Borrowers

IFC's Definitions of Targeted Sectors can be found here.

Development Impact

All projects under the COVID-19 Facility share the same development thesis that, by supporting its clients' capacity to sustain operations during these unexpected and uncertain times , IFC best positions the private sector to support the economic recovery process, shortening the time it will take for the most vulnerable to return to their traditional income-earning opportunities.

Additionality is driven by IFC's counter-cyclical role during crises, especially at a time when other lending institutions or investors' appetite may be subdued. Therefore, IFC's additionality arises from its unique ability to deploy at scale, in terms of volume as well as geographic reach, through its (i) successful experience in rapid crisis response; (ii) extensive client bank and partner networks; and (iii) set of programs aimed at investing both large scale, transactional liquidity and working capital in emerging markets.

Indicator	Metrics	Comments	Calendar Year 2022	Calendar Year 2023	Calendar Year 2024
CORE - E and S Management Systems (Y/N)	Compliance/Enhancement		Not Available	Not Available	Not Available

E&S Category Rationale / Risks and Mitigation

This project has been categorized as FI-2 in accordance with IFC’s Policy on Environmental and Social Sustainability, based on the use of proceeds. The project will support working capital loans and trade-finance related loans to clients under the COVID-19 Program. The E&S risk and impacts associated with these transactions are considered limited and can be managed through specific mitigation measures; the project portfolio risk is thus considered ‘medium’. The identified applicable requirements for this project are the IFC Exclusion List and the applicable national E&S laws in Nigeria. Given the use of proceeds and sectors covered by the bank, this project is not expected to support higher-risk transactions that may include: (a) involuntary resettlement; (b) potential adverse impacts on Indigenous Peoples; (c) significant risks to or impacts on the environment, community health and safety, biodiversity, cultural heritage; or (d) significant occupational health and safety risks. In addition, transactions involving coal mining, coal-related activities and upstream oil and gas activities will be excluded from the project portfolio.

The main E&S risks and impacts relate to the ability of the Bank to properly identify and manage the E&S risks associated with its lending activities in line with Performance Standard 1. In addition, risks associated with the Bank’s practices regarding labor and working conditions need to be assessed in line with the requirements of Performance Standard 2.

Summary of Client Environmental and Social Management System (ESMS)

Access Bank has an E&S team and a well-developed E&S risk management system for managing relevant E&S risks associated with its lending activities. The Bank’s labor and working conditions procedures are in line with IFC’s requirements under Performance Standard 2.

Contacts

For Inquiries About the Project, Contact

Access Bank PLC
Seun Bamidele Olufeko
Group Head, Project & Structured Finance
+234 7060414123
Seun.Olufeko@ACCESSBANKPLC.com
Plot 999c Danmole Street, Victoria Island, Lagos
www.accessbankplc.com

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IFC supports its clients in addressing environmental and social issues arising from their business activities by requiring its real sector clients to set up and administer appropriate grievance mechanisms and/or procedures to address complaints from Affected Communities in relation to environmental and social issues arising from IFC's clients' business activities. Since 2012, IFC's Financial Intermediary clients applying the Performance Standards are required to develop External Communications Mechanisms to receive and review inquiries or complaints from any interested party regarding the E&S risks and impacts of their operations.

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Complaints may relate to environmental and social harm regarding any aspect of the planning, implementation, or impact of a project or sub-project, and can be made by any individual, group, community, entity, or other party affected or likely to be affected by the environmental or social impacts of an IFC- or MIGA-financed business activity.

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CAO receives and addresses complaints in accordance with the CAO Policy, which can be accessed at: https://www.cao-ombudsman.org/policies-guidelines.

This Summary of Investment Information (SII) is prepared by IFC to disclose a factual summary of the main elements of the potential investment. It also includes findings and recommendations related to environmental and social considerations regarding this potential investment. The purpose of the SII is to enhance the transparency of IFC’s activities. For any project documentation or data included or attached herein, whether prepared by the project sponsor or otherwise, authorization has been given for public release by the project sponsor. IFC considers that this SII is of adequate quality for release to the public, but has not necessarily independently verified all of the project information therein. It is distributed in advance of IFC Board of Directors’ consideration and may be periodically updated thereafter. Board dates are estimates only and this document should not be construed as presuming the outcome of the Board Directors’ decision. The following SII is disclosed in accordance with IFC's Access to Information Policy (AIP) that went into effect on January 1, 2012.

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