BOI gets $1bn syndicated loan for more lending

The Bank of Industry (BOI) said it has concluded a landmark $1 billion loan syndication transaction to improve the capacity of the bank to support Micro, Small, Medium and Large enterprises in Nigeria.

In a statement, the bank said it will support President Muhammadu Buhari’s administration drive to revitalise the industrial sector and create 10 million jobs.

• We’re denied 52-month pension in Nasarawa – Union
• Gov’ship: Why APC must win Anambra – Uzodimma, Umahi, others

It also said the transaction marked the third major international debt syndication deal successfully concluded by BOI within the last three years.

In 2018, the bank raised the sum of $750m arranged by African Export-Import Bank (Afreximbank) which has been fully repaid, and in March this year, concluded a €1bn loan deal (Lead arranged by Afreximbank, Credit Suisse, Rand Merchant Bank and Sumitomo Mitsui Banking Corporation Europe Limited (SMBC).

It said Afreximbank and Credit Suisse acted as Co-ordinating Mandated Lead Arrangers, Underwriters, and Book runners of the transaction.

Africa Finance Corporation, First Rand (Rand Merchant Bank) and Sumitomo Mitsui Banking Corporation subsequently joined as Mandated Lead Arrangers and Book runners, while the Export-Import Bank of China joined as a Mandated Lead Arranger.

Afreximbank acted as the Facility Agent and Security Trustee for the deal.

The statement said it’s pleased to report that 28 international financial institutions and funds participated in this transaction, which was initially launched at $750m, but upsized to $1bn due to over-subscription.

On its disbursement, BOI said the facility will be disbursed in Naira at single-digit interest rates to borrowers with bankable projects.

Between 2015 and October 2020, the Bank of Industry with the support of its various stakeholders disbursed over ₦945bn to 3,013,087 enterprises, thus creating over 6.87m estimated direct and indirect jobs.

“With the successful conclusion of this deal, the Board and Management of Bank of Industry are confident that the bank is now better positioned to catalyse domestic production and facilitate job creation on a transformational scale, enhance local industry competitiveness, attract domestic and foreign investments,” it noted.