Banking
Fitch Expects Access Bank to Repay Diamond Bank’s $200m Eurobond Next Month
By Modupe Gbadeyanka
In May 2019, Eurobond worth N200 million issued by Diamond Bank Plc is expected to be due for repayment and with Access Bank merging with Diamond Bank, the tier-1 lender would be expected to repay the bond holders at maturity.
Renowned rating agency, Fitch Ratings, says it expect Access Bank to be able to settle the debt and not default.
In a statement issued on Wednesday, Fitch, which maintained the Rating Watch Negative (RWN) on Access Bank ratings following the completion of the merger with Diamond Bank Plc, said it “expects Access Bank to repay the $200 million Eurobond on the due date.”
Fitch said it will resolve the RWN on Access Bank’s ratings when it has sufficient information to fully assess the combined entity’s standalone creditworthiness.
In the meantime, Fitch has upgraded Diamond Bank’s Long-Term Issuer Default Rating (IDR) to ‘B’ from ‘CC’, aligning it with Access Bank’s Long-Term IDR to reflect the merger with a higher-rated entity, and simultaneously withdrawn Diamond Bank’s Long-Term IDR.
The merger of the two banks has resulted in Diamond Bank’s assets, liabilities (including Diamond Bank’s $200 million Eurobond due May 21, 2019) and other undertakings being assumed by Access Bank.
Fitch noted in the statement obtained by Business Post that the RWN on Access Bank Long-Term IDR and Viability Rating (VR) primarily reflects the potentially negative impact on its financial profile from the absorption of a bank with very weak asset quality, capitalisation and foreign currency liquidity.
Accordingly, Fitch expects Access Bank’s asset quality, capitalisation and, potentially, funding and liquidity to be weaker post-merger.
“At the same time, we recognize that Access’s will be acquiring substantial low-cost deposits from Diamond Bank, which could improve its overall cost of funding. The RWN on Access Bank’s ratings also reflects greater strategy and execution risks post-merger,” the rating firm said.
Furthermore, Fitch said it expects to resolve the RWN when there is further clarity on these elements of Access Bank’s standalone credit profile, which we anticipate will be following the release of its results for the first quarter of 2019.
Fitch hinted that a potential downgrade of the bank’s rating is likely to be limited to one notch given Access Bank’s reasonable asset quality and capitalisation pre-merger, and its potentially now stronger company profile and franchise as Nigeria’s largest bank by total assets.
It stressed that Access Bank’s ratings could be affirmed with a Stable Outlook if we view the impact from the merger as moderate, based on the combined bank’s financial metrics, and limited additional unforeseen risks emerging from Diamond Bank.
It further said Access Bank’s National Ratings reflect the bank’s creditworthiness relative to other issuers in Nigeria. The RWN on Access Bank’s National Ratings reflects potential downside risks of the merger.
It disclosed that Access Bank’s ratings could be downgraded if the bank’s financial profile, particularly its capitalisation, asset quality or foreign currency liquidity, deteriorates significantly with the merger or, in the medium term, if the bank’s risk appetite, strategy and/or business model weaken notably.
“The ratings could be affirmed if the impact from the merger is moderate. The ratings could be upgraded in the medium term if Access Bank’s financial profile becomes sustainably comparable with higher rated peers, such as Zenith Bank, Guaranty Trust Bank or United Bank for Africa.
“Access Bank’s National Ratings remain sensitive to a change in the bank’s creditworthiness relative to other Nigerian issuers.
“A change in Access Bank’s IDRs would lead to a change in the ratings of its senior debt. A change in Access Bank’s VR would lead to a change in the rating of its subordinated debt,” it said.
By Modupe Gbadeyanka
Registration for the second HerFidelity Apprenticeship Programme (HAP 2.0) organised by Fidelity Bank Plc has commenced.
The Divisional Head of Product Development at Fidelity Bank, Mr Osita Ede, informed newsmen that the initiative was designed to empower women with sustainable entrepreneurship skills.
The lender created the flagship women-empowerment initiative to equip women with practical, income‑generating skills and structured pathways to entrepreneurship.
“HerFidelity Apprenticeship Programme 2.0 reflects our commitment to continuous improvement. Having evaluated feedback from the first edition, we have returned with stronger partnerships and deeper mentorship programmes to ensure that women acquire not just skills, but sustainable economic opportunities,” he said.
“At the heart of the programme is guided, real‑world learning. Participants will undergo intensive apprenticeship training under reputable institutions and industry experts across select fields such as hair styling, shoe making, auto mechatronics, and interior decoration,” Mr Ede added.
He noted that HerFidelity Apprenticeship Programme 2.0 goes beyond skills acquisition by offering participants a wide range of business advisory services. These include business and financial literacy training, mentorship support throughout the apprenticeship journey, access to Fidelity Bank’s women‑focused and SME financial solutions, as well as guidance on business formalisation and growth strategies.
Further emphasising the bank’s vision, Mr Ede said, “By integrating structured mentorship with entrepreneurial development, Fidelity Bank is positioning women not just as trainees, but as future employers, innovators, and economic contributors within their communities. This aligns with our mandate to help individuals grow, businesses thrive, and economies prosper.”
By Modupe Gbadeyanka
A new branch of The Alternative Bank (AltBank) has been opened in Ondo State as part of the expansion drive of the financial institution.
A statement from the company disclosed that the new branch would support export-oriented agribusinesses through Letters of Credit and commodity-backed trade finance, ensuring that local producers can scale beyond state borders.
For SMEs, the bank is introducing robust payment rails, asset financing for equipment and inventory, and supply chain-backed facilities that strengthen working capital without trapping businesses in interest-based debt cycles.
The Governor of Ondo State, Mr Lucky Aiyedatiwa, represented by his Chief of
Staff, Mr Olusegun Omojuwa, at the commissioning of the branch, underscored the importance of financial institutions in economic development.
“The pivotal role of financial institutions to economic growth and development of any economy cannot be overemphasised. It provides access to capital, supporting small and medium-scale enterprises and encouraging savings.
“Therefore, I have no doubt in my mind that the presence of The Alternative Bank in Ondo State will deepen financial services, create employment opportunities and stimulate economic activities across various sectors,” he said.
In her remarks, the Executive Director for Commercial and Institutional Banking (Lagos and South West) at The Alternative Bank, Mrs Korede Demola-Adeniyi, commended the state government’s leadership and outlined the lender’s long-term vision for Ondo State.
“As Ondo State steps into its next fifty years, and into the future anchored on the sustainable development championed during the recent anniversary celebrations, The Alternative Bank is here to be the financial engine for that vision. We didn’t come to Akure to hang banners. We came to fund work, farms, shops, and factories.”
With Ondo State’s economy anchored largely on agriculture, particularly cocoa production, poultry farming, and other cash crops, alongside a growing SME and trade ecosystem, AltBank is deploying sector-specific financing solutions tailored to these strengths.
For cocoa aggregators, processors and poultry operators, the bank will provide production financing, facility expansion support, machinery lease structures, and structured trade facilities under its joint venture and cost-plus financing models, with transaction cycles of up to 180 days for commodity trades and longer-term structured asset financing for equipment and infrastructure.
The organisation is a notable national non-interest bank with a physical network now surpassing 170 locations, deploying capital to solve real-world challenges through initiatives such as the Mata Zalla project, which saw to the training of hundreds of women as electric tricycle drivers and mechanics.
By Adedapo Adesanya
The Governor of the Central Bank of Nigeria (CBN), Mr Yemi Cardoso, announced on Tuesday that the country’s banking sector is making strong progress in the recapitalisation drive, with 20 banks now fully compliant.
Mr Cardoso disclosed this during a press conference at the first Monetary Policy Committee (MPC) meeting of 2026, where he also highlighted positive developments in the nation’s foreign reserves.
On March 28, 2024, the apex bank announced an increase in the minimum capital requirements for commercial banks with international licences to N500 billion.
National and regional financial institutions’ capital bases were pegged at N200 billion and N50 billion, respectively.
Also, CBN raised the merchant bank minimum capital requirement to N50 billion for national licence holders.
The banking regulator said the new capital base for national and regional non-interest banks is N20 billion and N10 billion, respectively.
To meet the minimum capital requirements, CBN advised banks to consider the injection of “fresh equity capital through private placements, rights issue and/or offer for subscription”.
Following the development, several banks announced plans to raise funds through share and bond issuances.
In January, Zenith Bank said it had raised N350.46 billion through rights issue and public offer to meet the CBN minimum capital requirement.
Guaranty Trust Holding Company Plc (GTCO), on July 4, said it had successfully priced its fully marketed offering on the London Stock Exchange (LSE).
In September, the CBN governor said 14 banks fully met their recapitalisation requirements — up from eight banks in July.
With one month to the central bank’s March 31, 2026, recapitalisation deadline, 13 Nigerian lenders are yet to cross the finish line.
Additionally, the governor noted that 33 banks have raised funds as part of the ongoing recapitalisation exercise, signalling robust capital mobilisation across the sector.
He stated that gross foreign reserves have climbed to a 13-year high of $50.4 billion as of mid-February 2026.
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