Accion Microfinance Bank has entered the capital market in its first-ever commercial paper issuance worth N5 billion, a move aimed at strengthening the lender’s working capital and delivering its core mandate of providing financial support for Nigerians.
“The 5 billion commercial paper we launched today is not just about raising funds. It is about reinforcing our capacity to provide working capital, expand lending to small businesses, deepen financial innovation, and accelerate our digital transformation,” said Taiwo Jordan, MD/CEO of Accion MfB at the official launch of the programme on Friday in Lagos.
Scheduled in phases, the first series being a N2billion commercial paper raise with a tenor of 270 days, implied yield of 23 percent, and discount rate at 19.66 percent, is opened and expected to close by the 29th of August, 2025.
The debt instrument, exclusively arranged by FBNQuest Merchant Bank, has a maturity date of May 18, 2026, with a minimum investment of N5 million, that is 5,000 units at N1,000 per unit.
Jordan said during Accion Mfb’s three-year strategic plan, there was a very bold initiative to grow the balance sheets as liquidity at hand was not enough to serve as working capital, hence the reason for the CP programme.
“We realised that the inflationary pressure and also the volatility of the FX have eroded a lot of businesses’ capital, and so there is more need and more demand for cash, even though our average loan-backed customer is just about a million naira,” Jordan told BusinessDay.
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“We realised that a lot more people who have been using their equity in business now need the support of the banks to be able to drive their business and take it to the next level”.
The 18-year-old financial institution has a strong financial standing, enough to lure investors. As of mid 2025, the bank’s total assets have grown by 47 percent to over N23 billion. This is as loan portfolio grew from N16 billion to N19.2 billion, up 47 percent. Deposit has also risen to N7.2 billion from 4.95 billion as of December 2022.
The lender which has 526,000 active customers as of 2024 is betting on its credibility and that of its partners such as Citibank and IFC to get its debut commercial programme oversubscribed.
“I feel it’s going to be massively oversubscribed,” Jordan told BusinessDay.
“We’ve had a roadshow with investors, and there are very positive interests that are shown, strong interests, and there are committed investors who are ready to partner with us. One, because of the institutional strength that we bring. Accion is supported by institutions that have great credibility.”
Yetunde Falore, head of investment banking at FBNQUEST Merchant Bank, in her comments, said getting approvals to raise the CP demonstrates the strength of Accion MfB’s fundamentals while reinforcing investor confidence, and the integrity of the Nigerian capital market.
“This transaction is especially significant as it marks Accion Microfinance Bank’s debut in the Nigerian capital market, creating an opportunity for the bank to access additional capital from a diverse investor base,” Falore said.
“We believe the bank is well positioned for enhanced visibility in the Nigerian capital market. Its strong A minus credit rating from DataPro reflects the bank’s solid financial performance, sound liquidity, and ability to meet its obligations.”
Accion Microfinance Bank, with its head office in Lagos, operates a network of over 80 branches across more than 12 states strategically located within key geo-political zones in Nigeria, including Kano, Ondo, Rivers, Abia, Akwa Ibom, Abuja, Ilorin, and Kaduna.
