Abuja, Sept. 7, 2024 – The Bank of Industry (BoI) has secured €1.425 billion from the senior phase of its global loan syndication scheme.
This amount represents a 42.5% oversubscription, reflecting strong confidence from international financial markets.
The bank said in a statement that the facility included both fully and partially guaranteed tranches with support from the Africa Finance Corporation (AFC).
It said that it raised €1 billion through a syndicated term loan facility in July 2022 which was successfully repaid by July 2024.
The BoI described the successful syndication as a clear indication of foreign investors’ confidence in both the bank and Nigeria’s economic future.
Proceeds from the loan will be used to meet the increasing demand for funds across the country, particularly in the private sector.
The bank appointed the AFC and Standard Chartered Bank as global coordinators for the €1 billion syndicated term loan facility.
Other financial institutions involved as initial mandated lead arrangers and bookrunners include the African Export-Import Bank, First Abu Dhabi Bank PJSC, FirstRand Bank Limited (through its Rand Merchant Bank division), Mashreqbank PSC, SMBC Bank International, and Standard Chartered Bank.
Absa Bank Limited and Export-Import Bank of India’s London Branch also joined as lead arrangers.
The BoI said it anticipated a successful conclusion of the ongoing general phase of the loan syndication, given the significant interest from both local and international investors and banks.
Olasupo Olusi, the Managing Director and CEO of the BoI, commended the efforts of the bank’s management in achieving this milestone.
“This is the largest syndication in the Bank’s history and is a testament to the hard work and dedication of the BoI’s management to ensure access to low-interest, long-term funds for Nigeria’s growing private sector, in line with the vision of President Bola Ahmed Tinubu,” Olusi said.
He expressed gratitude to the Central Bank of Nigeria (CBN) and other government agencies for their support and reaffirmed the bank’s commitment to collaborating with global development financial institutions to secure more favorable loan terms for Nigeria’s private enterprises. (GBN)