Access Bank Plc has invested $60 million to acquire a stake in South Africa’s Grobank.
Speaking on Tuesday, the Chief Executive of the bank, Herbert Wigwe, said it become the first Nigerian lender to venture into South Africa.
Wigwe said Access Bank would expand trade finance capability within Grobank, which is currently focusing on the agricultural sector in South Africa.
“Access invested both equity and debt in the South African bank, part of a regional expansion to tap into correspondent and trade banking deals on the continent” he said.
The bank revealed that it had received regulatory approvals for the acquisition, which is expected to close in the second quarter of 2021.
In August, Access Bank agreed to buy loss-making Cavmont Bank from the Zambian arm of Namibian financial services group, Capricorn, for a nominal fee of 1 kwacha ($0.0014).
Access is restructuring itself into a holding company and has received approval from Nigeria’s Central Bank.