In London, Afreximbank and global financial institutions signed a landmark €2 billion syndicated loan for Nigeria’s Bank of Industry (BOI).
With €175 million already disbursed, the facility aims to finance trade and development projects, driving sustainable growth for Nigerian businesses.
In London, the African Export-Import Bank (Afreximbank) and a consortium of financial institutions signed a landmark €2 billion syndicated term loan facility for Nigeria’s Bank of Industry (BOI).
Afreximbank took the lead, acting as an initial mandated lead arranger, bookrunner, and facility agent.
By September 2024, it had disbursed its €175 million contribution in two tranches: €115 million under Tranche A and €60 million under Tranche B.
Afreximbank’s Leadership And Strategic Role In Financing
To facilitate the process, Afreximbank coordinated the early bird syndication in August 2024.
Subsequently, the facility reached financial close, enabling BOI to secure the funds it needed to support trade and trade-related projects for Nigerian corporates.
“This transaction demonstrates our commitment to Nigeria’s economic growth,” stated Senior Executive Vice President at Afreximbank, Denys Denya.
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“By acting as lender, bookrunner, and agent, we are ensuring Nigerian businesses gain access to vital resources that drive sustainable development.”
Meanwhile, BOI’s Managing Director, Olasupo Olusi, emphasised the importance of the deal.
“This €2 billion facility reflects the confidence global financial institutions have in BOI’s track record.
With Afreximbank’s support, we will finance critical projects and foster sustainable growth across Nigeria,” he said.
The facility’s structure further highlights its strength.
Tranche A is 85% guaranteed by the Africa Finance Corporation (AFC) and 15% by the Central Bank of Nigeria (CBN), while Tranche B is fully guaranteed by the AFC.
The three-year tenor includes quarterly repayments beginning after the first year.
In conclusion, this milestone agreement showcases the power of international collaboration to bolster Nigeria’s industrial and economic transformation.
