Nigeria's oldest development finance institution, Bank of Industry Limited has raised an additional €440 million under its EUR1bn syndicated term loan facility (the Facility), brining the total amount raised to €1.9 billion, representing an oversubscription of 87%. The Facility includes a fully guaranteed and a partially guaranteed tranche by Africa Finance Corporation. Proceeds of the facility will be used for general corporate purposes including to finance trade and trade related projects of eligible corporates in Nigeria.
BOI had raised an unprecedented €1.425b (representing 42% over subscription) in the senior phase of the facility (senior phase) in September 2024, marking the largest funding round in the bank’s history.
Africa Finance Corporation , Standard Chartered, African Export-Import Bank (Afreximbank), First Abu Dhabi Bank (FAB), FirstRand, acting through its RMB - Rand Merchant Bank (London Branch), MashreqBank, PSC (New York, NY), Sumitomo Mitsui Banking Corporation – SMBC Group, Absa Mauritius, Absa Corporate and Investment Banking, and Export-Import Bank of India London Branch acted as part of the senior syndicate, together raising the initial €1.43 billion.
Following this, AFC has now led a general syndication, through which the additional €447 million was raised, bringing the total transaction to €1.9 billion. The facility is expected to further grow to €2 billion.
The five-year, amortising syndicated term loan facility was structured with an on-demand guarantee from the Central Bank of Nigeria. The transaction was launched at an initial size of €750 million, but was upsized at closing to €1billion due to the significant oversubscription received from the market.
This achievement follows BoI’s successful raise of €1 billion via a syndicated term loan in July 2022, which was repaid in full by July 2024.
Bank of Industry Limited appointed Africa Finance Corporation and Standard Chartered Bank as the Global Coordinators for the facility.
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 plc, and Standard Chartered Bank were appointed as the Initial Mandated Lead Arrangers and Bookrunners. 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.
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