Nigeria’s Bank of Industry Secures €1.425 Billion in Oversubscribed Loan Syndication
The Bank of Industry (BOI) has made a significant move in the global financial market, securing €1.425 billion in its senior phase of loan syndication. This represents a 42.5 per cent oversubscription from international financial markets, marking a landmark transaction for the bank.
According to a statement from the bank, the facility includes a fully guaranteed and partially guaranteed tranche by Africa Finance Corporation. This is the second time the bank has tapped the syndicated loan market, following a successful €1 billion term loan facility in July 2022, which was repaid in July 2024.
The proceeds of the loan will be used to finance a growing demand for BOI funds across the country. Dr. Olasupo Olusi, Managing Director/CEO of the Bank, praised the hard work and dedication of the bank’s management, stating that this is the largest syndication in the bank’s history. He added that the success of the syndication is a testament to the bank’s commitment to providing low-interest and longer-tenured funds to Nigeria’s growing private sector, in line with the vision of President Bola Ahmed Tinubu.
The bank expressed gratitude for the support received from the Central Bank of Nigeria (CBN) and other government agencies. Olusi assured that the Bank of Industry will continue to work with global development financial institutions to ensure better loan terms for Nigeria’s private enterprises.
The loan syndication was coordinated by Africa Finance Corporation and Standard Chartered Bank, with other notable banks and financial institutions joining the facility as mandated lead arrangers and bookrunners. The bank is now looking forward to a successful conclusion of the ongoing general phase, given the level of interest expressed by local and international banks and investors.
This significant development is a vote of confidence in the Nigerian economy, as foreign investors perceive a bright future for the country. The Bank of Industry’s success in securing this loan syndication is a testament to its commitment to supporting Nigeria’s private sector and driving economic growth.
