Bank of Industry secures €1.42bn global syndication loan

The Bank of Industry (BoI) says it secured €1.425 billion from the senior phase of its global loan syndication scheme.

In a statement on Thursday, the BoI said the loan is largest in its history and represents a 42.5 percent oversubscription from international financial markets.

The bank said the facility includes a fully and partially guaranteed tranche by the Africa Finance Corporation (AFC).

“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 statement reads.

“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 BoI said proceeds of the loan would help to finance a growing demand for its funds across the country.

According to the statement, the bank appointed the AFC and Standard Chartered Bank as the global coordinators for the €1 billion syndicated term loan facility (with an accordion of another €1 billion).

“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,” the BoI said.

“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.”

The bank said it is looking forward to a successful conclusion of the ongoing general phase, given the level of interest expressed by local and international banks and investors.

Speaking on the transaction, Olasupo Olusi, managing director and chief executive officer (CEO) of the bank, attributed the achievement to the hard work and dedication of the institution’s management.

“This 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,” Olusi said.

“We are grateful for the support received from the CBN and other agencies of government.”

Olusi assured that the bank, under his leadership, would continue to work with global development financial institutions to ensure better loan terms for Nigeria’s private enterprises.