By Adedapo Adesanya
The Bank of Industry (BOI) has received a €2 billion loan to boost trade in Nigeria, facilitated by Africa Finance Corporation (AFC), a continental infrastructure solutions provider, acting as global coordinator, lead co-arranger, underwriter, bookrunner, and guarantor.
The transaction is a record global loan syndication for BOI, and marks the largest capital raise in its history, setting a new standard for developmental finance across Africa.
Proceeds of the facility will be used for general corporate purposes including to finance trade and trade-related projects of eligible corporates in Nigeria.
The facility was syndicated at two levels with AFC, Standard Chartered Bank, African Export-Import Bank, First Abu Dhabi Bank PJSC, FirstRand Bank Limited, acting through its Rand Merchant Bank division (London Branch), Mashreqbank PSC, SMBC Bank International PLC, Absa Bank (Mauritius) Limited, Absa Bank Limited (acting through its Corporate and Investment Banking division) and Export-Import Bank of India London Branch acting as part of a senior syndicate, together raising an initial €1.43 billion.
Following this, AFC led a general syndication, through which an additional €447 million was raised, bringing the total transaction to €1.9 billion, representing an oversubscription of 87 per cent.
The facility is expected to further grow to €2 billion.
This global loan syndication is significant for Nigeria and BoI, as the institution was able to successfully tap the international capital market at a time when credit is scarce and prohibitively expensive.
According to an announcement, it highlights the market confidence in BoI and AFC as leading financial institutions, demonstrating the power of collaboration and innovation between African financial institutions.
“This successful syndication is a significant milestone achievement, not only for BOI but for Africa’s financial landscape as a whole. We are proud to have played a central role in this historic global loan syndication, solidifying AFC’s position as a trusted bridge between global investors and infrastructure projects in Africa,” said Mr Banji Fehintola, Executive Board member & Head of Financial Services at AFC.
“Our sincere appreciation also goes to our Joint Coordinator and partner Standard Chartered Bank and all other banks that participated in making this transaction a huge success,” he added.
“This financing, the sixth international capital raising for BOI, is the largest fundraising in our history and the largest syndication in the history of African development finance institutions. A key constant in achieving this success is the continued support of our international funding partners, including AFC.
“We are grateful for the unique role that AFC played to make this transaction a success,“ said Mr Olasupo Olusi, the Managing Director of BOI.
As part of the syndication, AFC leveraged its A3 (stable outlook) investment-grade rating, recently affirmed by Moody’s, to bring together an international consortium of financial institutions.
The transaction aligns with the corporation’s mission to provide pragmatic solutions that close the continent’s infrastructure gap, accelerate industrialisation, and enhance Africa’s economic resilience against global economic challenges.