Accion MfB Launches N5bn Commercial Paper Programme

Sunday Ehigiator

Accion Microfinance Bank Limited (MfB) has officially launched its debut N5 billion Commercial Paper (CP) Issuance Programme, marking its first entry into Nigeria’s capital market. 

At a signing ceremony held in Lagos, the bank announced the commencement of the Series 1 issuance, targeting N2 billion with a tenor of 270 days.

Speaking at the event, Managing Director and Chief Executive Officer of Accion MFB, Mr. Taiwo Joda, said the programme represents a bold step in the bank’s three-year strategic plan to strengthen its balance sheet, deepen financial inclusion, and support small businesses at the bottom of the economic pyramid.

“This signing signifies not just regulatory approval but also our readiness to provide working capital that will empower micro-entrepreneurs. The first tranche of N2 billion will be strictly used to bridge funding gaps created by inflationary pressures and foreign exchange volatility,” Joda explained.

He noted that investors have already shown strong interest following a series of roadshows, adding that Accion’s institutional credibility, backed by partners such as Ecobank, Citibank, IFC, and Accion International, would ensure investor confidence and likely oversubscription of the offer.

According to the offer summary, the Series 1 issuance opens at an implied yield of 23 per cent and a discount rate of 19.66 per cent, with a minimum subscription of N5 million. The offer opened on August 21, 2025 and will close on August 29, 2025, with settlement scheduled for September 1, 2025, and maturity on May 18, 2026.

Also speaking, the Head of Investment Banking at FBNQuest Merchant Bank (the sole adviser and arranger of the programme), Mrs. Yetunde Falore, described the transaction as a milestone for both Accion and the Nigerian capital market.

“This debut CP issuance positions Accion to diversify its funding base while demonstrating resilience and transparency. Despite the recent transition of CP regulation from FMDQ to the Securities and Exchange Commission, we worked closely with regulators and partners to achieve a successful registration,” Falore stated