Access Bank has sealed a loan agreement with the Japan International Cooperation Agency, JICA. The agreement, valued at US$75 million, marks JICA’s inaugural private-sector investment finance in the banking sector within the Sub-Saharan Africa.
The ceremony, underscores the commitment of Access Bank, JICA, and Citi to support climate change measures in Nigeria. The proceeds of the loan are expected to be used to finance a wide range of sub-projects, such as renewable energy projects, energy-saving projects, and agriculture-related projects that contribute to climate change measures.
Roosevelt Ogbonna, Managing Director and CEO of Access Bank PLC commented on the significance of this partnership, stating:
“At Access Bank, we recognise the urgent need for sustainable solutions to combat climate change. This landmark agreement with JICA reaffirms our commitment to leveraging financial resources for impactful initiatives that promote environmental resilience and contribute to Nigeria’s climate action agenda. By investing in renewable energy, energy-saving, and agriculture-related projects, we aim to create a positive ripple effect, not only mitigating the effects of climate change but also fostering economic growth and improving livelihoods within our communities. Indeed, this partnership represents a shared commitment to a greener, more sustainable future for Nigeria and beyond.”
Jin Wakabayashi, Deputy Director General, the Private Sector Partnership and Finance Department at JICA commented on the importance of implementing this project: “As this project is positioned as the first bank loan facility by JICA’s private sector investment finance in the country, this significantly marks a new milestone in the long history of JICA’s cooperation with Nigeria and has a very special meaning indeed.
In addition, we are delighted to have an opportunity to work with such a reputable and quality partner, Access Bank, which has a sophisticated business platform and an established track record of climate finance. Under the partnership with Access Bank, JICA’s facility is expected to be used for projects that contribute to climate change measures in Nigeria, and we expect that this collaboration will be further deepened for the years to come.”
Citi is proud to partner as the sole coordinator and agent in facilitating the first transaction in Sub-Saharan Africa under the Private Sector Investment and
Finance scheme. Following on from the Citi-arranged DFC (U.S. International Development Finance Corporation) facility to Access Bank in 2022, this partnership is a meaningful roadmap towards TICAD 9 (Tokyo International Conference on Africa).
Furthermore, the implementation of the deal aligns with Nigeria’s efforts to mobilise private sector funds for climate action, in line with Sustainable Development Goals 2 (zero hunger), 7 (affordable and clean energy), 13 (climate action), and 17 (partnerships for the goals). Moreover, it resonates with Japanese Prime Minister Kishida Fumio’s vision for a more climate-resilient and sustainable society, as announced at the Partnership for Global Infrastructure and Investment, a side event of the G7 Summit in Hiroshima in May 2023.
Through strategic collaborations and innovative financing mechanisms, Access Bank and JICA together with Citi are pioneering efforts to address climate change challenges, setting a precedent for sustainable development in the region.
