Nigeria’s Bank of Industry has concluded a $1 billion three-year syndicated loan to support businesses and revitalize the industrial sector in the country.
“The deal demonstrates the capacity of financial institutions to continue their vital activities during the pandemic and their positive attitude to African risks”, Afreximbank, which served as facility agent and security trustee, said in an emailed statement late Tuesday. It is the largest international syndicated loan raised by a local financial institution since coronavirus outbreak, it said.
The transaction, initially launched at $750 million, closed at $1 billion due to over-subscription with the participation of 28 financial institutions, BOI said in a release on its website. The strong credit ratings of the bank contributed to the success of the deal despite challenges posed by Covid-19, it said.
Nigeria’s central bank has provided a full guaranty on the facility and a 100% currency swap to cover foreign exchange risks, according to the development bank. The credit will be disbursed in naira at single interest rates to borrowers.
Afreximbank and Credit Suisse served as joint mandated lead arrangers, underwriters and bookrunners of the transaction, while the Africa Finance Corporation, Rand Merchant Bank, SMBC, and the Export Import Bank of China also joined as mandated lead arrangers and Bookrunners.
The facility is the third major international debt syndication deal closed by BOI, the lender said. A similar loan of 1 billion Euros was raised by the development bank earlier in March.