Bank of Industry Secures Historic €1.43bn in Global Loan Syndication, Marking Largest Transaction in its History
The Bank of Industry (BoI) has raised an unprecedented €1.43 billion in the senior phase of its global loan syndication, marking the largest funding round in the bank’s history. The development finance institution announced the milestone in a statement released on Thursday, noting that the transaction also saw a significant 42.5% oversubscription.
The financing includes both fully guaranteed and partially guaranteed tranches, backed by the Africa Finance Corporation (AFC). This achievement follows BoI’s successful raise of €1 billion via a syndicated term loan in July 2022, which was repaid in full by July 2024.
Speaking on the transaction, BoI’s Managing Director and Chief Executive, Dr. Olasupo Olusi, expressed that the proceeds would meet the growing demand for BoI funding nationwide. He highlighted the achievement as the largest syndication in the bank’s history, reflecting the institution’s commitment to providing low-interest, long-term capital to Nigeria’s expanding private sector in line with President Bola Tinubu’s vision.
“This landmark syndication is a testament to the BoI management’s dedication to making crucial funds accessible to Nigeria’s private enterprises,” Olusi said. He further expressed gratitude for the support from the Central Bank of Nigeria (CBN) and other government agencies, reaffirming the bank’s intent to continue working with global financial institutions to secure favorable loan terms for the country’s businesses.
Olusi also emphasized the syndication’s significance as a vote of confidence from international investors, who view Nigeria as a promising market for future growth.
For this transaction, AFC and Standard Chartered Bank served as the global coordinators of the €1 billion syndicated loan facility, with the option to increase the facility by an additional €1 billion. Several high-profile financial institutions, including African Export-Import Bank, First Abu Dhabi Bank PJSC, FirstRand Bank Limited, Mashreqbank PSC, and SMBC Bank International Plc, were appointed as initial mandated lead arrangers and bookrunners. Absa Bank Limited and Export-Import Bank of India London Branch have also joined the facility as key lead arrangers.
BoI expressed optimism about the ongoing general phase of the syndication, citing strong interest from both local and international banks and investors.
Source: Punch
