The Bank of Industry (BOI) has achieved a landmark milestone, securing a €2 billion loan to bolster trade and trade-related projects in Nigeria. Facilitated by the Africa Finance Corporation (AFC)—acting as the global coordinator, lead co-arranger, underwriter, bookrunner, and guarantor—the deal represents the largest capital raise in BOI’s history and sets a new benchmark for developmental finance in Africa.
Details of the Facility
- Purpose: Proceeds will be used for general corporate purposes, including financing trade and trade-related projects for eligible Nigerian corporates.
- Structure: The loan syndication was executed in two phases:
- An initial €1.43 billion raised by AFC and a senior syndicate of global and African financial institutions, including Standard Chartered Bank, African Export-Import Bank, First Abu Dhabi Bank, Rand Merchant Bank, Mashreqbank, SMBC Bank, Absa Bank, and Export-Import Bank of India.
- A second €447 million was secured through general syndication, bringing the total to €1.9 billion, with expectations to grow to €2 billion.
Significance of the Syndication
- Record-Setting Achievement: This global loan syndication marks the largest fundraising effort by an African development finance institution.
- Market Confidence: Successfully securing funding during a period of global credit scarcity underscores BOI’s credibility and the strength of AFC’s A3 (stable outlook) investment-grade rating from Moody’s.
- Collaborative Success: The transaction highlights the power of partnerships among African financial institutions and global investors.
Statements from Key Leaders
- Mr. Banji Fehintola, Executive Board Member & Head of Financial Services at AFC:
“This successful syndication is a significant milestone, not only for BOI but for Africa’s financial landscape. It underscores AFC’s role as a trusted bridge between global investors and Africa’s infrastructure projects.”
- Mr. Olasupo Olusi, Managing Director of BOI:
“This financing is the largest in BOI’s history and a testament to the unwavering support of our international funding partners, particularly AFC.”
Impact on Africa’s Development
The facility aligns with AFC’s mission to close Africa’s infrastructure gap, drive industrialization, and enhance the continent’s economic resilience. BOI’s ability to tap into international capital markets reflects a renewed confidence in Africa’s economic potential and the collaborative efforts of its leading financial institutions.
This milestone solidifies BOI’s role in advancing Nigeria’s trade landscape, fostering industrial growth, and supporting sustainable development across the continent.
