Finland - Nigeria Business Seminar and Finance Workshop 10.12.2012

1. Access Bank Plc
Capabilities in International
Financing
December 2012

2. Content
Fact Sheet
Nigeria:
Access Bank Group
Our Role in International Transactions
Global Payments
Project/Structured Trade Finance
Contacts
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3. FACT SHEET
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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 $5.6billion (2012) Federal & State Judiciaries
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5. Access Bank Group: Fact Sheet
Access Bank at a Glance
Access Bank Plc: RC Number 125384.
Licensed by the Central Bank of
Parent Company
Nigeria (CBN) as a Commercial Bank
with International Operation
Tunisia
Morocco
Credit Rating: A- / A / A- [Agusto / S&P, Fitch] Algeria Libya Egypt
Key Industry Telecoms, Oil & Gas, Financial Mauritania
Segment Institutions, FMCG, Governments Mali Niger Sudan
Burkina Chad
Gambia Faso
Authorised share capital of USD82.8 Senegal Guinea Benin
Sierra Côte Nigeria
Ethiopia
million Leone d’voire na
Gha Central African South
Liberia Togo Republic Sudan
Cameroon Somalia
Share Capital
Paid up share capital of Gabon
CongoDem. Rep. Uganda Kenya
USD72.8million ( 22.9 billion ordinary Congo Rwanda
Burundi
shares of 50 kobo each) Tanzania
Malawi
Net Assets USD1.39 billion Angola Mozambique
Zambia
Botswana
348 Business Offices, 1,600 ATMs, Namibia
Channels Madagascar
8,480 POS Botswana
Banking Subsidiaries
South
Number of 10,462 staff ( 3,114 Professional, Africa
Employees 7,348 Non Professional)
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6. With clear impact on our key performance indicators
Total Assets (N ‘bn) Total Deposits (N ‘bn)
First Bank 2,505 First Bank 1,777
Zenith Bank 2,309 Zenith Bank 1,654
UBA 1,648 UBA 1,211
Access Bank 1,635 (US$ 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
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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
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7. OUR ROLE IN INTERNATIONAL TRANSACTIONS
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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.
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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 – 2012
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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 Confirmations
Certificate of Other Correspondent
Capital Importation Importer Banks
Trade Loans
Dividend
Remittance
SBLCs & Guarantees
Foreign Transfers .
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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.
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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
Quality
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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
Award
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14. STRUCTURED/PROJECT FINANCE
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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
Finance
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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.
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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.
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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”).
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19. ECA Facility
Repayments Repayments
Importer Access Bank Funding Bank
Loan Agreement
Loan Agreement
Contract
Guarantee/ Insurance
Policy
Exporter ECA
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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.
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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.
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22. Our Alliances
Development Finance Institutions Export Credit Agencies Our Trade Finance Partners
Our partners for financial, economic, environmental and social development
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23. Contacts
Contact
1 Ebenezer Olufowose E-mail: olufowosee@accessbankplc.com
(Executive Director, Financial Markets )
Mobile No. +234 803 402 2759
2 Banjo Adegbohungbe E-mail: adebanjo.adegbohungbe@accessbankplc.com
(Head, Global Payments)
Mobile No. +234 803 474 3856
3 Hadiza Ambursa E-mail: hadiza.ambursa@accessbankplc.com
(Head, Corporate Finance)
Mobile No. +234 802 733 9997
Access Bank Plc
999c Danmole Street
Victoria Island
Lagos
Nigeria
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