On Thursday, the Bank of Industry (BOI) declared that the senior phase of its worldwide loan syndication had received €1.43 billion and that it had recorded a 14.5% subscription rate. In addition, the historic deal included a 42.5% oversubscription as the bank capitalises on the syndicated lending market.
Africa Finance Corporation (AFC) has provided a fully guaranteed and partially guaranteed tranche of the credit. Through a term loan syndicated facility, the development finance institution successfully raised €1 billion in July 2022, and it was successfully repaid in July 2024. The outcome demonstrated foreign investors’ faith in the bank and the Nigerian economy, which they saw as having a promising future.
The managing director and chief executive of Bank of Industry, Dr. Olasupo Olusi, stated in a statement that the loan’s proceeds will support financing the nation’s expanding need for BoI funds.
BrandSpur national news stories report that Dr. Olusi is a renowned economist and seasoned specialist in development finance.
Throughout his impressive two-decade career, he has shaped economic policies, promoted fiscal sustainability, and advanced the growth of the private and financial sectors globally. With years of experience working for major organizations like the World Bank and the International Finance Corporation (IFC), he provides a lot of knowledge to the Bank of Industry.
According to him: “This is the largest syndication in the bank’s history and is a testament to the hard work and dedication of the management of BoI 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,” he added.
The renowned Economist further guaranteed that as head of the bank, he will keep collaborating with international development finance organisations to secure improved credit conditions for private businesses in Nigeria.
With an additional €1 billion in accordance, the bank designated the AFC and Standard Chartered Bank as the global coordinators of a €1 billion syndicated term loan facility.
Continuing, the Initial Mandated Lead Arrangers and Bookrunners were also appointed by AFC, African Export-Import Bank, First Abu Dhabi Bank PJSC, FirstRand Bank Limited (London Branch), Mashreqbank psc, SMBC Bank International plc, and Standard Chartered Bank.
Moreover, Export-Import Bank of India’s London Branch, Absa Bank Limited (functioning through its Corporate and Investment Banking division), and its affiliates have joined the facility as Initial Mandated Lead Arrangers.
However, a successful completion of the current general phase is anticipated by BOI, considering the degree of interest shown by both domestic and foreign banks and investors.
