ACCESS BANK ENTERS INTO $75 MILLION LOAN PACT WITH JICA FOR CLIMATE CHANGE INITIATIVES
Access Bank PLC has taken a significant stride toward promoting environmental sustainability by formalizing a groundbreaking loan agreement with the Japan International Cooperation Agency (JICA).
The agreement, valued at $75 million, marks JICA’s inaugural private sector investment finance within the Sub-Saharan African banking sector. Citi played the role of sole coordinator and agent for this significant initiative.
The ceremony, conducted on Monday, February 5, 2024, underscores the shared commitment of Access Bank, JICA, and Citi to bolster climate change initiatives in Nigeria.
The loan proceeds are designated to fund various sub-projects, including those related to renewable energy, energy conservation, and agriculture, all contributing to climate change mitigation efforts.
Roosevelt Ogbonna, the Managing Director/CEO of Access Bank PLC, emphasized the importance of this partnership, stating, “At Access Bank, we acknowledge the pressing need for sustainable solutions to combat climate change. This landmark agreement with JICA reaffirms our dedication to utilizing financial resources for impactful initiatives that promote environmental resilience and contribute to Nigeria’s climate action agenda.”
Ogbonna further explained, “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.”
Jin Wakabayashi, Deputy Director General of the Private Sector Partnership and Finance Department at JICA, expressed the significance of implementing this project. He stated, “This project, positioned as the first bank loan facility by JICA’s private sector investment finance in the country, significantly marks a new milestone in the long history of JICA’s cooperation with Nigeria.”
Wakabayashi also praised the collaboration with Access Bank, a reputable partner with a sophisticated business platform and established track record of climate finance. He expressed optimism that the collaboration would deepen in the years to come.
Richard Hodder, Global Head of Export Agency Finance (EAF) at Citi, highlighted the impact of this international partnership. He commented, “At Citi, we are committed to bringing solutions to our clients that facilitate investment linked to the energy transition, energy security, and the key drivers of economic growth.”
Hodder also noted that Citi, as the sole coordinator and agent, is proud to facilitate JICA’s first transaction in Sub-Saharan Africa under the Private Sector Investment and Finance scheme.
The implementation of this agreement aligns with Nigeria’s commitments as a signatory to the Paris Agreement, with ambitious targets to reduce greenhouse gas emissions. The deal also resonates with Sustainable Development Goals 2, 7, 13, and 17, reflecting Nigeria’s efforts to mobilize private sector funds for climate action.
This collaboration addresses climate change challenges through strategic partnerships and innovative financing mechanisms, setting a precedent for sustainable development in the region.
News Source: Techeconomy
