The Bank of Industry (BOI) has successfully secured a historic €1.425 billion in global loan syndication, positioning the bank to significantly enhance its financing for African businesses. This deal, which was 42.5% oversubscribed, represents the largest in BOI’s history and strengthens its role in supporting industrial and private sectors across the continent.
Olasupo Olusi, Managing Director and CEO of BOI, noted that the oversubscription highlights strong international investor confidence in both the bank and Africa’s economic future. “This syndication is a major vote of confidence from foreign investors in the BOI and the economic prospects of Nigeria and Africa at large,” Olusi said.
The funds raised will be channeled into providing much-needed capital for businesses, particularly in the real sector, at affordable rates. BOI aims to support enterprises with long-term, low-interest financing that will boost economic growth and expand business opportunities.
The €1.425 billion deal follows BOI’s previous successful syndications, including €1 billion in 2020 and 2022, both of which were fully repaid by July 2024. Olusi highlighted that the bank’s strong repayment history contributed to the high investor confidence seen in this latest transaction.
The syndication involved more than 30 global financial institutions, including Development Financial Institutions (DFIs), Export Credit Agencies (ECAs), and multilateral organizations from Europe, the Middle East, Far East, and Africa. Key participants included Africa Finance Corporation, Standard Chartered Bank, African Export-Import Bank, and First Abu Dhabi Bank.
“The transaction was initially launched at €1 billion but was oversubscribed by 42.5%, demonstrating the trust that international institutions have in our bank and in Africa’s economic potential,” Olusi said. He further emphasized that the funds will help BOI provide “affordable and patient capital” to businesses across various sectors, further solidifying the bank’s balance sheet, which stood at N3.9 trillion at the end of 2023.
Africa Finance Corporation and Standard Chartered Bank acted as global coordinators for the syndication, which was priced competitively against the Secured Overnight Financing Rate (SOFR) plus a margin. This allows BOI to continue extending credit at favorable terms for businesses.
Olusi credited the success of the syndication to the hard work of the BOI management team and the support of government agencies, including the Central Bank of Nigeria (CBN). He also praised President Bola Ahmed Tinubu’s vision of expanding economic opportunities for businesses.
“This transaction aligns with President Tinubu’s vision for Nigeria’s private sector, ensuring that much-needed low-interest and long-tenured funds are available to drive growth. We are grateful for the support from the CBN and other government bodies,” Olusi stated.
The proceeds from the loan will support businesses across various sectors, enabling them to expand and thrive in a competitive market. BOI remains committed to collaborating with global financial institutions to secure even better loan terms for African enterprises, thereby contributing to the continent’s overall economic development.
With the general phase of the syndication still ongoing, Olusi expressed optimism about attracting even more interest from both local and international investors, reinforcing BOI’s position as a key player in the global financial landscape.
