Access Bank secures US$40m from Proparco, FMO
Lending medium to long-term funds has been a major challenge for banks in Ghana because deposits from which they lend are more of short-term.
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To circumvent this challenge, however, Access Bank (Ghana) Ltd, has secured a US$40 million credit facility from the French Development Bank, PROPARCO, and its Dutch counterpart, FMO, to support lending to the private sector.
The long-term credit transaction was signed in Rotterdam, The Netherlands, last week.
The Managing Director of Access Bank (Ghana), Mr Dolapo Ogundimu, told journalists upon his return that the facility was in line with the bank’s strategy to expand its lending portfolio to key sectors of the Ghanaian economy.
“Through our extensive branch network, the bank plans to finance businesses in the export, manufacturing, agriculture and allied businesses, infrastructure and the services sectors of the economy,” Mr Ogundimu said.
He noted that the deal was a landmark for Access Bank and that the bank appreciated the support and trust the partners had in it, saying; “FMO and PROPARCO have been our partners since we opened shop in 2009, and this facility demonstrates their confidence in our bank’s strong corporate governance and risk management policies.”
Mr Ogundimu said the facility would also enable Access Bank to deepen its financial intermediation role and act as a catalyst for the country’s development agenda.
A statement from the bank, made available to the Daily Graphic, also quoted the Deputy Chief Executive Officer of PROPARCO, Ms Marie-Hélène Loison, who spoke on behalf of the consortium, as saying that “this is the second time PROPARCO and FMO are financing the Access Bank Group”.
PROPARCO is proud to be the lead arranger of this facility which will increase the range of long-term financial resources and strengthen local financing capacities in a wide variety of key economic sectors, the statement said.