Accion Microfinance Bank has raised ₦5 billion through its Series 2 Commercial Paper issuance, securing full subscription from investors as it moves to expand lending to micro, small and medium-sized businesses.
The bank said the proceeds would strengthen its lending capacity, support working capital and help it expand access to financial services for underserved individuals and businesses.
The commercial paper offer opened on July 27 and closed on August 4, with a tenor of 364 days. It was issued at a discount rate of 19.03 per cent, translating to an implied yield of 23.50 per cent.
Taiwo Joda, managing director and chief executive officer of Accion Microfinance Bank, said the full subscription reflected investor confidence in the bank’s strategy and growth prospects.
The bank said the new funding would enable it to deepen support for MSMEs, invest in technology and deliver improved financial solutions to its customers.
The transaction follows Accion MFB’s earlier Series 1 commercial paper issuance, which was also oversubscribed. The bank repaid the ₦2.02 billion Series 1 commercial paper in full in June.
For small businesses, access to finance remains one of the biggest constraints to expansion, particularly as high borrowing costs continue to limit the ability of many businesses to obtain affordable credit.
The latest fundraising gives Accion MFB additional funding to lend to entrepreneurs and small businesses, while also showing continued investor interest in commercial paper as an alternative source of funding for Nigerian businesses.
The successful issuance comes as Nigerian companies increasingly turn to the debt capital market to raise short-term funds outside traditional bank lending. Accion MFB’s next task will be converting the additional funding into lending that reaches the small businesses it says it aims to support.
