The Bank of Industry (BoI) has secured a €1.425 billion loan through the senior phase of its global loan syndication program, marking the largest loan in its history. This sum represents a 42.5% oversubscription from international financial markets.
The facility includes both fully and partially guaranteed tranches, backed by the Africa Finance Corporation (AFC). BoI previously raised €1 billion in a syndicated loan in July 2022, which was successfully repaid by July 2024.
“The success of this syndication demonstrates the confidence foreign investors have in the bank and Nigeria’s economic prospects,” BoI said in a statement.
Proceeds from this loan will be used to meet the growing demand for BoI’s financing services across Nigeria. The bank has appointed AFC and Standard Chartered Bank as global coordinators for the €1 billion syndicated term loan facility, which has an accordion feature allowing for an additional €1 billion.
Initial lead arrangers and bookrunners for the facility include Africa Finance Corporation, African Export-Import Bank, First Abu Dhabi Bank, FirstRand Bank (London Branch), Mashreqbank, SMBC Bank International, and Standard Chartered Bank. Absa Bank and the Export-Import Bank of India have also joined as lead arrangers.
BoI’s CEO, Olasupo Olusi, credited the accomplishment to the hard work of the bank’s management and expressed optimism about the continued interest from both local and international investors.
“This is the largest syndication in the bank’s history and underscores our commitment to providing low-interest, long-term funding to support Nigeria’s private sector, in line with the vision of President Bola Ahmed Tinubu,” Olusi said.
He also emphasized the continued collaboration with global development financial institutions to secure favorable loan terms for Nigerian businesses.
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