Capabilities in International Financing, Ebenezer Olufowose, Access Bank


Published on

Finland - Nigeria Business Seminar and Finance Workshop 10.12.2012

Published in: Business
  • Be the first to comment

No Downloads
Total views
On SlideShare
From Embeds
Number of Embeds
Embeds 0
No embeds

No notes for slide

Capabilities in International Financing, Ebenezer Olufowose, Access Bank

  1. 1. Access Bank Plc Capabilities in International FinancingDecember 2012
  2. 2. Content Fact Sheet Nigeria: Access Bank Group Our Role in International Transactions Global Payments Project/Structured Trade Finance Contacts2
  3. 3. FACT SHEET3
  4. 4. NIGERIA: Fact Sheet Location: Western Africa Geographic coordinates: 10 00 N, 8 00E PEOPLE Population 162.5 billion (2011) Population Growth Rate 2.5% (2011) ECONOMY GDP Unemployment Rate $235.9billion (2011) 23.9% (2011 est.) GOVERNMENT Executive GDP per Capital Inflation $1,452.0 (2011) 11.7% (2012) Federal, State & Local GDP real Growth Rate Foreign Direct Investment (FDI) Legislative 6.7% (2011) $8.92billion (2011 est.) National & State Assemblies External Reserves External Debt Judiciary $44.5billion $5.6billion (2012) Federal & State Judiciaries4
  5. 5. Access Bank Group: Fact Sheet Access Bank at a Glance Access Bank Plc: RC Number 125384. Licensed by the Central Bank of Parent Company Nigeria (CBN) as a Commercial Bank with International Operation Tunisia Morocco Credit Rating: A- / A / A- [Agusto / S&P, Fitch] Algeria Libya Egypt Key Industry Telecoms, Oil & Gas, Financial Mauritania Segment Institutions, FMCG, Governments Mali Niger Sudan Burkina Chad Gambia Faso Authorised share capital of USD82.8 Senegal Guinea Benin Sierra Côte Nigeria Ethiopia million Leone d’voire na Gha Central African South Liberia Togo Republic Sudan Cameroon Somalia Share Capital Paid up share capital of Gabon CongoDem. Rep. Uganda Kenya USD72.8million ( 22.9 billion ordinary Congo Rwanda Burundi shares of 50 kobo each) Tanzania Malawi Net Assets USD1.39 billion Angola Mozambique Zambia Botswana 348 Business Offices, 1,600 ATMs, Namibia Channels Madagascar 8,480 POS Botswana Banking Subsidiaries South Number of 10,462 staff ( 3,114 Professional, Africa Employees 7,348 Non Professional)5
  6. 6. With clear impact on our key performance indicators Total Assets (N ‘bn) Total Deposits (N ‘bn) First Bank 2,505 First Bank 1,777 Zenith Bank 2,309 Zenith Bank 1,654 UBA 1,648 UBA 1,211 Access Bank 1,635 (US$ 10.4BN) 4 Access Bank 1,102 4 (US$ 7.02BN) GTBank 1,612 GTBank 1,033 Access Bank (2010) 727 6 Access Bank (2010) 471 7 Branch Network Comments Business combination in 2011 enhanced market UBA 620 positioning and provided a springboard for Access Bank to rank amongst the tier 1 (or top 4 banks) in Nigeria First Bank 570 Significant growth in customer base from 400,000 (pre- merger) to 1.5m (during the merger) to 5.5m (post merger) Access Bank 348 Increased balance sheet size affords enhanced capacity to 3 provide credit to larger combined wholesale and retail client Zenith Bank 315 base Expanded branch network improves accessibility, GTBank 177 engendering banking convenience and strengthening customer-bank relationships Access Bank (2010) 150 136
  8. 8. Our Role in International Transactions Project/ • Project Finance Global • Trade Finance • Structured Trade Payments • Funds Transfer Structured Finance Finance • Advisory Services Access Bank is able to: Help clients evaluate their financing needs and advise on appropriate types of capital structure that best meets those needs. Create innovative financing solutions designed to assist clients increase returns and manage risk, and Facilitate international transactions and trading arrangements.8
  9. 9. Access Bank: A Regional Trade Power House Strong market share of Import Trade Volumes - 12% in 2011 Top 3 trade bank in Nigeria Electronic Trade Platform – accesstrade 1000+ Active Trade Customers Strong alliances with Correspondent Banks & Multilateral Development Institutions – Trade Lines of over US$1.3 bn Dominant Issuing Bank in Africa under IFC Global Trade Finance Program International Recognition – IFC GLOBALTRADE FINANCE PROGRAM Issuing Bank Awards Innovation in Trade Structures – 2007 Best GTFP Network Bank – 2008 Most Active GTFP Issuing Bank in Africa – 2010 & 2011 Most Active GTFP Issuing Bank in Sub Saharan Africa – 20129
  10. 10. Access Bank Trade Chain Model Trade Loans LC Confirmations Export Trade Finance Exporter The Access Bank UK Trade Loans Back to Back LC Refinances Bills Discounting Guarantees Regulatory Approvals Access Bank Plc Regulators Import Duties Payment Payments of taxes & Levies Import Finance LC ConfirmationsCertificate of Other CorrespondentCapital Importation Importer Banks Trade Loans Dividend Remittance SBLCs & Guarantees Foreign Transfers . 10
  11. 11. Global Payments: Access Bank UK Ltd. Access Bank UK limited plays a vital role in Access Bank Group‟s Trade chain model With its dedicated trade finance experts and recent Confirmation Bank status accredited under IFC Global Trade Finance Program, the subsidiary is able to offer the following products/services to it clients: Export Letters of Credit The good and solid reputation of the bank helps when offering advise and confirmation to beneficiaries anywhere in the world. Our name is widely accepted and, where necessary, we can support trade through our global partners. Import Letters of Credit The Bank can open stand-alone letters of credit on behalf of its corporate clients in favour of their suppliers, subject to agreement the facility that best meets the client‟s needs Standby Letters of Credit Typically these are issued to support open-account trading and to mitigate payment risk in the event of default, subject to agreeing a facility. Payment Guarantees The bank can provide financial security to the beneficiary should a buyer fail to pay which mitigates credit or country risks when selling on an open account basis.11
  12. 12. Global Payments: accesstrade This is a unique electronic solution that allows our trade customers to initiate and track transactions electronically. It also affords clients the ability to customise, schedule and generate reports, and retrieve information electronically. Access bank was the first to introduce this solution in Nigeria and it remains the leading electronic trade platform in the country. Benefits include: Convenience Speed Competitive Advantage Flexibility Quality12
  13. 13. Access Bank Group Awards and Recognition Access Bank has received numerous awards for its commitment to innovation and sustainability. 2011 FT/IFC Sustainable Bank of the Year Award 2010 (Middle East and Africa) Most Active Issuing Bank category under the IFC GTFP 2008 Most Innovative Bank Award13
  15. 15. Structured/Project Finance Capital Markets We provide Syndicate ECA/DFI Structuring • Medium/Long term funding solutions Excellence Financing •Wholesale funding solutions seamless execution Project/ Financial Structured Advisory Finance15
  16. 16. Structured/Project Financing Project Finance ECA and Multilateral Finance Our project finance team arranges and We leverage our business relationships participates in large ticket limited and no with Export Credit Agencies and recourse project financing covering Development Finance Institutions, to diverse sectors such as power, roads, provide tailor-fitted cost-effective financing manufacturing, telecommunications e.t.c to our esteemed clients. Syndication/Co-financing/Risk-Sharing Structured Finance We offer debt arrangement services to As experts in Structured Finance, we create our clients and also participate in innovative ways of providing increased landmark debt financing transactions liquidity and flexible funding sources to our whilst also creating broader risk sharing customers. E.g. Acquisition finance, asset and co-financing structures to allow for a based finance, lease structuring etc. larger pool of potential fund sources Underwriting Financial Advisory We offer underwriting services and Through our highly skilled team of bridged facilities to ensure that our professionals, we offer financial advisory customers immediate capital needs are services covering project finance, met in a timely manner. corporate restructuring e.t.c.16
  17. 17. On-lending Facilities From DFIs Repayments Repayments Nigerian Access Bank Lending Institution (DFI) Client Disbursement Disbursement DFI provides on-lending facility to Access Bank which Access Bank On-lends to projects. There are two „mirror‟ loan agreements – one between Access Bank and DFI and the other between Access Bank and our client(s). DFI disburses funds directly to Access Bank and looks to Access Bank for repayment – not exposed to project risks. Access Banks takes on the credit risk relating to the project. Existing on-lending relationship with IFC, FMO, AfDB, BIO, FINNFUND, and EIB.17
  18. 18. Structured Trade Finance Structured Trade Finance provides the much needed term financing for Emerging Market customers using Credit enhanced structures: ► Export Credit Agencies “ECA‟s” (e.g. NEXI, USExim, Hermes, Coface, Finnvera) ► Development Finance Institutions(e.g. IFC, ADB). The support from the agencies can be: ► Related to the equipment sourcing from their specific countries (“tied”); or ► Unrelated to the equipment sourcing from a specific country (“untied”).18
  19. 19. ECA Facility Repayments Repayments Importer Access Bank Funding Bank Loan Agreement Loan Agreement Contract Guarantee/ Insurance Policy Exporter ECA19
  20. 20. Transaction Dynamics A Finnish exporter concludes a commercial contract with a Nigerian Importer (an Access Bank client) for the supply of capital equipment and/or services. Access Bank‟s customer/Nigerian importer requires FX denominated medium-term financing (5 years plus) in support of the commercial contract. Access Bank approaches a Finnish Bank to act as the liquidity provider premised on cover to be provided by Finnish ECA. Access Bank approaches Finnish ECA to provide the required Export Credit Guarantee. Upon agreeing the structure and the principal terms of financing, a formal application is submitted to Finnish ECA. Requisite documents to aid Finnish ECA with their internal review will also be provided. Upon completing the review and obtaining its internal approvals, Finnish ECA confirms its commitment to the transaction and negotiates the loan agreement. Finnish Bank also obtains its internal approvals to act as liquidity provider. Loan documentation is agreed and signed, and the facility disbursed.20
  21. 21. Major Advantages Lifetime of ECA-covered loans is much longer than that of commercial facilities with positive effect on the structure of the borrower‟s balance sheet. Reliability during long construction periods and thus adding stability to the underlying project. Larger credit volumes are achievable. Mitigation of political and economic risk for the exporter. Contributing to competitive pricing with interest based on the international money / capital markets rates (YEN /EUR / USD). Competitive pricing, Flexible financing costs. Limited negative cost of carry as draw downs under the facility will be in line with milestone payments.21
  22. 22. Our AlliancesDevelopment Finance Institutions Export Credit Agencies Our Trade Finance Partners Our partners for financial, economic, environmental and social development 22
  23. 23. Contacts Contact 1 Ebenezer Olufowose E-mail: (Executive Director, Financial Markets ) Mobile No. +234 803 402 2759 2 Banjo Adegbohungbe E-mail: (Head, Global Payments) Mobile No. +234 803 474 3856 3 Hadiza Ambursa E-mail: (Head, Corporate Finance) Mobile No. +234 802 733 9997 Access Bank Plc 999c Danmole Street Victoria Island Lagos Nigeria23