Access Bank signs $162.5 million loan to boost capital

Access Bank Plc, which is in the process of taking over rival Diamond Bank, signed an agreement for a $162.5 million loan to boost its capital and fund lending operations.

Dutch development bank, FMO, is arranging the loan, while financial institutions including Belgian Investment Co. for Developing Countries, Blue Orchard Microfinance Fund, Finnish Fund for Industrial Cooperation Ltd. and Ecumenical Development Cooperative Society U.A. are providing the financing, the Lagos-based company said in a statement.

The funds will qualify as Tier-II capital, which will help the bank fund a five-year expansion plan, it said. The loan will also support local micro-, small-, and medium-sized enterprises in the West African nation.

Access Bank agreed last year to buy Carlyle-backed Diamond Bank in a deal worth about $200 million. It plans to complete the takeover on April 1 after the shareholders of both banks approved the deal last week.