BoI Secures €1.42bn Loan from International Finance Market
The Bank of Industry (BoI) has received €1.425 billion from the senior phase of its global loan syndication- representing a 42.5 per cent oversubscription from international financial markets.
BOI made this known in a statement, saying that this is the senior phase of another landmark transaction for the bank tapping the syndicated loan market.
The bank said that the Facility includes a fully guaranteed and a partially guaranteed tranche by Africa Finance Corporation.
The statement further said, “Previously Bank of Industry had raised EUR 1,000,000,000 via a Term Loan syndicated facility In July 2022, which has been successfully repaid in July 2024. The performance of the syndication is a mark of confidence in the bank and indeed in the Nigerian economy by foreign investors who perceive a bright future for the country
“The proceeds of the loan will help finance a growing demand for Bol funds across the country. According to the MD/CEO of the Bank Dr Olasupo Olusi, “this is the largest syndication in the Bank’s history and is testament to the hard work and dedication of the management of Bol to ensuring that much needed low interest and longer tenured funds are available to Nigeria’s growing private sector in line with the vision of His Excellency President Bola Ahmed Tinubu.
“We are grateful for the support received from the CBN and other agencies of government. Olusi assured that the Bank of Industry under his leadership will continue to work with global development financial institutions to ensure better loan terms for Nigeria’s private enterprises.
“Bank of Industry Limited appointed Africa Finance Corporation and Standard Chartered Bank as the Global Coordinators of a EUR1bn syndicated term loan facility (with accordion of another EUR1bn). Africa Finance Corporation, African Export-Import Bank, First Abu Dhabi Bank PJSC, FirstRand Bank Limited (London Branch), acting through its Rand Merchant Bank division, Mashreqbank psc.
“SMBC Bank International pic, and Standard Chartered Bank were appointed as the Initial Mandated Lead Arrangers and Bookrunners. Absa Bank Limited (acting through its Corporate and Investment Banking division) and its affiliates and Export-Import Bank of India London Branch have also joined the Facility as Initial Mandated Lead Arrangers.
“BOI is looking forward to a successful conclusion of the ongoing general phase, given the level of interest expressed by the local and international banks and investors.”
