The Bank of Industry (BOI) has secured €1.425 billion from the senior phase of its global loan syndication, surpassing its initial target by 42.5% due to strong demand from international financial markets.
In a statement, BOI highlighted that this marks a significant achievement, tapping into the syndicated loan market once again. The facility includes both fully and partially guaranteed tranches, backed by the Africa Finance Corporation (AFC).
The statement also noted that in July 2022, BOI raised €1 billion through a syndicated term loan, which was successfully repaid in July 2024. The successful performance of this syndication, according to BOI, reflects the confidence of foreign investors in both the bank and Nigeria’s economic prospects.
BOI plans to use the proceeds to meet the increasing demand for its funds across the country. The bank’s Managing Director/CEO, Dr. Olasupo Olusi, commented on the milestone, calling it the largest syndication in BOI’s history. He credited the achievement to the dedication of the bank’s management, aligned with President Bola Ahmed Tinubu’s vision of providing low-interest, long-term funding to Nigeria’s growing private sector.
“We appreciate the support from the Central Bank of Nigeria (CBN) and other government agencies,” Olusi said, adding that BOI will continue collaborating with global development financial institutions to secure favorable loan terms for Nigerian businesses.
The bank appointed Africa Finance Corporation and Standard Chartered Bank as the global coordinators for the €1 billion syndicated term loan, with an option to extend it by another €1 billion. A consortium of banks, including Africa Finance Corporation, African Export-Import Bank, First Abu Dhabi Bank PJSC, FirstRand Bank Limited, Mashreqbank PSC, SMBC Bank International, and Standard Chartered Bank, served as the initial mandated lead arrangers and bookrunners. Absa Bank Limited and the Export-Import Bank of India London Branch also joined as lead arrangers.
BOI expressed optimism about the ongoing general phase of the syndication, given the strong interest from both local and international banks and investors.
