The Bank of Industry, BOI, has raised €1.425 billion from the senior phase of its global loan syndication to boost financing for Nigeria’s businesses.
The deal, which received a 42.5 percent oversubscription from international financial markets, cements its position as a key player in financing Nigeria’s industrial and private sectors.
Data showed that the largest loan syndications the bank ever did were €1bn in 2020 and 2022 respectively, and successfully repaid in July 2024.
Olasupo Olusi, the managing director and chief executive officer of BOI in a statement said that the latest loan syndication shows a significant vote of confidence from foreign investors in both the BoI and Nigeria’s economic prospects.
Olusi explained that the syndicated loan will be instrumental in meeting the growing demand for low-interest, long-term financing for Nigeria’s private sector.
“This is a significant milestone in the bank’s history and its drive to keep achieving its mandate to drive sustainable industrialization in Nigeria.
“This transaction was launched at €1bn with an accordion of up to €1bn. The result being discussed today is the outcome of the senior phase, which was over-subscribed by 42.5 percent. The general phase is ongoing as we speak and we are optimistic of a very favorable outcome upon its close”, he said.
It was gathered that the lenders include the Global Co-ordinations – Africa Finance Corporation and Standard Chartered Bank; The Facility Agent – Africa Export-Import Bank, other Initial Mandated Lead Arrangers and Bookrunners, as well as several other financial institutions spread across Africa, Europe and the Middle East.
